THE BOURSE WHISPERER: Dempsey Minerals has told the market that it no longer intends to continue with its takeover bid for all shares in Winmar Resources.
Winmar Resources is a Western Australia-based exploration company that has a predetermined right to earn and acquire 100 per cent of the Hamersley iron project located in the Pilbara.
Dempsey flagged its intention to make an off‐market takeover bid for all of the shares in Winmar in November.
A week later Winmar announced that it had agreed to issue shares to PXSteel International (Asia) Corporation Limited, subject to Winmar shareholder approval.
Dempsey said it was unaware of the PXSteel agreement and could not have been expected to know of it at the time it announced its intention to bid for shares in Winmar.
“Winmar’s entry into an agreement to issue shares to PXSteel, although conditional on Winmar shareholder approval, is a prescribed occurrence which breaches an important condition of Dempsey’s bid, Dempsey Minerals said in its ASX announcement.
“As a result Dempsey will not proceed with its announced bid for all shares in Winmar in circumstances where the contracts to acquire Winmar’s shares arising upon acceptances of Dempsey’s takeover offers would be subject to an already triggered material defeating condition.”