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- Ramelius Resources (RMS) is offering to buy up Apollo Consolidated (AOP) for an increased price of 62 cents per share
- The offer is higher than Gold Road Resources’ bid of 56 cents per share and gives Apollo an estimated value of $181 million
- The revised takeover offer opens today, with AOP’s Board agreeing to sell their shares to give RMS a 19.9 per cent stake in Apollo
- The Board of Apollo is also recommending shareholders accept the offer, in the absence of a superior bid
- Shares in Ramelius are down 0.31 per cent to $1.59, while shares in Apollo are up 6.67 per cent to 64 cents
Ramelius Resources (RMS) is offering to buy all of the securities in Apollo Consolidated (AOP) for an increased price of 62 cents per share.
The new offer is higher than Gold Road Resources’ October 21 bid to buy Apollo for 56 cents per share.
It also gives AOP an estimated value of $181 million, with Apollo shareholders to receive 34 cents in cash and 0.1778 Ramelius shares per AOP share.
The Board of Apollo recommends its shareholders accept the revised offer, in the absence of a superior bid.
The AOP Board and majority shareholder has also agreed to sell its shares to Ramelius, guaranteeing the business takes a 19.9 per cent stake in Apollo.
RMS’s revised unconditional offer will open from today and is set to remain open for roughly a month.
Commenting on why it wants to acquire Apollo, Ramelius said it would be advantageous to develop AOP’s Lake Rebecca project using its existing WA workforce.
RMS explained it has development experience in the state as it has produced and now operates several gold mines.
Following today’s takeover offer, shares in Ramelius have ended Monday down a slight 0.31 per cent at $1.59 each.
Meanwhile, shares in Apollo have ended the day up 6.67 per cent at 64 cents per share.
