Tag: Hostile Takeover

INDEPENDENCE Group (ASX: IGO) has increased the pressure in its takeover bid for Panoramic Resources (ASX: PAN), after Savanah downgraded its FY20 guidance at the Savannah nickel project in the East Kimberley, WA. Citing ongoing difficulties at the Savanah project, including underperformance of the paste filling system that impacted the stoping sequence, low nickel grade due to hanging wall failure, and continuing equipment availability, IGO has requested expedited and thorough due diligence to be completed. Panoramic had indicated it would need to raise additional capital, potentially through an entitlement offer in the near term, and that there would likely be a breach of several conditions of the off-market takeover offer bid made on November 4. “Given the material change to the...

INDEPENDENCE Group (ASX: IGO) has launched a $312m takeover bid for Panoramic Resources (ASX: PAN). IGO said the hostile all-scrip bid was taken to shareholders after a number of attempts to engage with the board for a friendly takeover were unsuccessful. The company cited poor performance and a “lack of engagement from the Panoramic board” as the reason for backing the takeover. “The offer represents, in IGO’s view, the best opportunity for Panoramic’s shareholders to crystalise and de-risk meaningful value from their investment in Panoramic in the foreseeable future,” it said. The offer would pay a premium 42pc to the last closing price of Panoramic shares before the date of the bidder’s statement, and 51pc to the one-month VWAP. Under...