THE BOURSE WHISPERER: Energia Minerals (ASX: EMX) has recommended its shareholders firmly reject the recent unsolicited offer by Cauldron Energy (ASX: CXU) to acquire all the company’s shares.
Cauldron offered Energia shareholders one Cauldron share for every eight Energia shares held.
Energia’s substantial shareholders, who together hold 48.19 per cent of the issued capital of Energia, notified the company in writing that based on the information currently available they do not intend to accept the Cauldron offer on its current terms.
“The Cauldron offer is subject to, amongst other things, a 90 per cent minimum acceptance condition,” Energia Minerals explained in its ASX announcement.
“This condition cannot therefore be satisfied and, unless waived or the Cauldron offer is amended and the intentions of those shareholders change, the Cauldron offer cannot become unconditional and will fail.”
As it waits to receive Cauldron Energy’s Bidder’s Statement, Energia advised its shareholders to take no action regarding the offer while indicating it believes the offer, as it stands, is set to fail.