Australia’s Panoramic rejects Independence’s ‘opportunistically timed’ takeover offer
Australian nickel miner Panoramic Resources on Thursday unanimously recommended shareholders reject a A$312 million ($211.7 million) takeover offer by larger peer Independence Group NL.
The nickel miner said in a statement the offer was “opportunistically timed” and shareholders would reduce their exposure to “near-term improvements in operational performance” if they accepted.
Shareholders also should wait to see if a superior offer emerged, it added.
Independence made a A$312 million ($211.7 million) takeover bid on Nov. 4, offering one IGO share for every 13 Panaromic shares held, with an implied offer price of 47.6 Australian cents per Panoramic share.
Panoramic on Thursday also announced a 1 for 6 accelerated pro-rata non-renounceable entitlement offer to raise about A$31 million after costs.
Independence restated last month that any capital-raising offer by Panoramic would represent a breach of their offer.
($1 = 1.4736 Australian dollars)
(By Sameer Manekar; Editing by Chris Reese and Stephen Coates)