15th Jan 2015 09:47
LONDON (Alliance News) - Base Resources Ltd saw shares drop on Thursday after it said its off-market takeover offer to acquire Australia's World Titanium Resources Ltd is "unlikely to succeed" after World Titanium secured binding undertakings from the majority of its shareholders to not accept the offer.
Base shares were down 8.1% in London to 8.50 pence per share on Thursday morning.
On December 23, the mineral sands producer focused on its Kwale operations in Kenya, East Africa, said it would offer one Base share for every five World Titanium shares.
The offer was subject to a number of conditions, including 40% minimum acceptance by World Titanium shareholders.
Following discussions with key World Titanium shareholders, Base said it has concluded that the offer is now unlikely to succeed unless there is a significant change in circumstances, after World Titanium secured binding undertakings to not accept the offer from its shareholders with combined holdings of over 60%.
Base Resources said the offer it has made is final and said it will not increase or change its offer, nor will it extend the closing date for the deal, which is on February 6.
On January 6, in the absence of a superior proposal, World Titanium's largest institutional shareholder, JP Morgan Asset Management (UK) Ltd, which holds 7.7% of World Titanium, accepted Base's deal through a pre-bid acceptance agreement.
Base said Thursday it is exploring alternative growth options.
By Joshua Warner; [email protected]; @JoshAlliance
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