Zenith advises of shareholder activity ahead of Forrestania takeover offer acceptance deadline
As the deadline looms for ASX-listed Zenith Minerals shareholders to accept an off-market takeover bid by fellow-listed Forrestania Resources by July 30, Zenith has advised of its shareholder Ida Metal Investments having indicated it will not accept the takeover offer.
In fact, Ida Metal acquired four-million ordinary Zenith shares at $0.10 apiece, increasing its holding to 64-million shares, or 10.1% of Zenith's issued ordinary share capital, on July 22.
However, the effective change in Ida's voting power in respect of the Forrestania takeover is less than 1%.
Zenith says Forrestania's takeover offer is only subject to a 50.1% minimum acceptable condition calculated on a fully diluted basis. Accordingly, Ida Metal's 10.1% shareholding does not, of itself, prevent the Forrestania takeover offer from becoming unconditional.
Zenith's board reaffirms its unanimous recommendation that shareholders accept the Forrestania takeover offer in the absence of any superior proposal.
The offer entails one Forrestania share for every 4.3 Zenith shares.
Forrestania says in its own statement issued on July 23 that it has received acceptances for the offer that equate to a 41.74% voting power in Zenith.
Forrestania is expanding its copper, lithium and gold development footprint across the Southern Cross, Eastern Goldfields and Forrestania regions of Western Australia.
Zenith's flagship asset is the consolidated Dulcie gold project.
