The prediction from the board of Allegiance Mining last week that Zinifex's revised offer is ‘unlikely to be its last move' bore fruit today as the assailant made another offer in the quest to acquire the shares of the target.
Zinifex today said it will simplify the takeover offer by its subsidiary Zinifex Australia Ltd for all the issued ordinary shares of Allegiance Mining.
In addition to making the offer unconditional late last week, the zinc miner now says it will offer $1 cash per share for all Allegiance shares, irrespective of whether it acquired a relevant interest in 30% of shares or receives a directors' recommendation.
Previously, Zinifex offered 90 cents per Allegiance share, or $1 per share if it acquired more than 30% or if the Allegiance board recommends the offer.
In the initial offer made 17 December, Zinifex states its offer is ‘compelling to all stakeholders. Allegiance shareholders will receive an attractive premium for their shares'.
The feeling was not mutual, with Allegiance board repeatedly advising shareholders to ‘reject Zinifex's unsolicited, opportunistic and inadequate offer'.
In a statement to the stock exchange, Zinifex said it reserves the right to stand in the market to acquire Allegiance shares at prices up to and including the offer price.
"Zinifex notes the current market turmoil, which has accelerated the decline in values of many peer mid-sized ASX-listed nickel companies. We made our intention clear when we proposed to offer up to $1 cash per Allegiance share and Zinifex stands by that intention," Zinifex's chief executive officer, Andrew Michelmore said.
"At this time, we felt individual shareholders would be supportive of a simplified offer structure and enhanced liquidity in the market such that they can avail themselves of a real 41% premium," he said.
Shares in Zinifex rose 54 cents to $8.94 while AGM rose 5 cents to $1.04.
