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- Gold Road Resources (GOR) won’t be adjusting its offer price for Apollo Consolidated (AOP) following an improved offer from Ramelius Resources (RMS)
- Originally GOR put forward a bid to take over all the shares in Apollo for 56 cents each which RMS countered with an increased price of 62 cents per share
- Moving forward, GOR can either not accept RMS’ offer and take no further action, accept its shareholding interest into the improved offer, or, dispose of its shareholding interest
- GOR has since removed its standing bid in the market for Apollo shares
- RMS shares were trading steady at $1.64, GOR is up 2.9 per cent at $1.42, and AOP has dropped 4.6 per cent to trade at 62.5 cents
Gold Road Resources (GOR) says it won’t be adjusting its offer price for Apollo Consolidated (AOP) following an improved offer from Ramelius Resources (RMS).
Originally, GOR put forward a bid to take over all of the shares in Apollo for 56 cents each. RMS countered this offer with an increased price of 62 cents per share.
Ramelius Resources’ offer values AOP at $181 million, with shareholders to receive 34 cents in cash and 0.1778 Ramelius shares per share held in AOP.
Further, the RMS offer is unconditional and has been unanimously recommended by the directors of Apollo.
Today, GOR announced it does not intend to improve its offer, nor vary the offer by extending the offer period.
As required under the Corporations Act, a bidder’s statement in respect of Gold Road’s offer is due to be dispatched shortly, with the offer expected to close at 7pm AEDT tonight.
Moving forward, the company has not concluded what it will do in relation to its 19.9 per cent hold in Apollo which comprises more than 58 million shares.
The options for GOR include not accepting the RMS offer and taking no further action, accepting its shareholding interest into the improved offer, or, disposing of its shareholding interest.
GOR has since removed its standing bid in the market for Apollo shares at its offer price of 56 cents per share.
Ramelius Resources shares were trading steady at $1.64, Gold Road Resources is up 2.9 per cent at $1.42, and Apollo Consolidated has dropped 4.6 per cent to trade at 62.5 cents at 1:16pm AEDT.
