Aurenne scoops up Alt Resources’ shares on-market at discount to off-market takeover offer
As part of its takeover of Western Australian gold explorer Alt Resources (ASX: ARS), private entity Aurenne Ularring has upped its stake to 15.24% after scooping up shares on-market in the explorer earlier this month.
Aurenne revealed today that on the 3 June it had made an on-market purchase of additional securities in Alt at $0.047 each – lifting its interest from 15.05% to 15.24%.
The increased ownership of Alt follows Aurenne’s bidder’s statement yesterday, which valued the outstanding shares in Alt at $0.0505 each.
Aurenne released the official all cash offer of $0.0505 per share, which is a 74% premium to Alt’s closing price of $0.029 on 28 April, the day before Alt went into a trading halt and Aurenne made its takeover intentions public.
The offer also represents a 166% premium to Alt’s volume weighted average price of $0.019 for the 30 days before the 28 April.
In its bidder’s statement, Aurenne told shareholders its offer provides “full, certain, and immediate value” to Alt’s shareholders.
The statement also noted Aurenne’s offer avoids “significant funding requirements” for Alt to underpin its development plans and associated dilution risks.
Aurenne said its rationale for acquiring Alt was part of its expansion strategy.
Alt’s board endorses initial offer
When Aurenne’s offer was made public in early May, Alt’s chairman William Ellis said it was “compelling”.
He added it was a “strong endorsement” in the company and its Mt Ida and Bottle Creek gold project.
“The Alt board remains fully committed to acting in the best interests of Alt shareholders.”
With the bidder’s statement now released, Alt has two weeks to issue its target’s statement.
As well as the off-market takeover, Aurenne agreed to lend Alt $3.68 million via a convertible note. The funding will enable Alt to make its July instalment to the Bottle Creek vendors to lock in ownership of the tenements.
It will also enable Alt to continue delivery of its maiden ore reserve and Mt Ida and Bottle Creek pre-feasibility study without further dilution.
Article on SmallCaps by Lorna Nichols – June 16, 2020