THE BOURSE WHISPERER: Windward Resources (ASX: WIN) has acquiesced to a takeover offer from Independence Group (ASX: IGO).
The two companies have entered into a Bid Implementation Agreement (BIA), the upshot of which will result in Independence (or a subsidiary of Independence) making an off-market takeover offer to acquire all of the issued shares of Windward.
Under the terms of the Offer, Windward shareholders will receive 19 cents cash per Windward share, a 46 per cent premium on the securities’ last trade of 13 cents.
The offer values Windward at approximately $20.5 million.
“Windward’s Board of Directors unanimously recommends that shareholders accept the offer, in the absence of a superior proposal,” Windward Resources said in its ASX announcement.
“Each Windward director has indicated they intend to accept the Offer in respect of Windward shares they own or control, in the absence of a superior proposal.”
The man with the big say in proceedings, Windward’s major shareholder, Mark Creasy, who controls entities holding a 27.44 per cent interest in the company, has given his approval to the deal with the proviso being the vote at the upcoming EGM decides against the recently announced Eastern Goldfields (ASX: EGS) transaction, which would have delivered a $2.2 million share placement at 12 cents per share to EGS.
“The Board of Windward consider the offer from Independence to be superior to the Eastern Goldfields transaction and at the Extraordinary General Meeting currently planned for 7 November 2016 will recommend shareholders vote against the Eastern Goldfields transaction,” Windward said.