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Austral Resources to Proceed with Proposed Hammer Metals Takeover after Larvotto Withdrawal
['Imelda Cotton']
Small Caps
Austral Resources Australia (ASX: AR1) will proceed with a proposed takeover of Hammer Metals (ASX: HMX) after competing suitor Larvotto Resources (ASX: LRV) withdrew its right to submit a counteroffer.
Major Hammer shareholders — who collectively control 141 million shares or 16% of the company — have confirmed they will vote in favour of the takeover.
Scheme ConsiderationAustral’s scheme consideration provides Hammer shareholders with a total implied value of $0.087 per Hammer share comprising 1.2903 Austral shares for each Hammer share held.
Premium Offer PriceAustral’s bid reflects a premium of 29.4% to the implied offer price of $0.067 per Hammer share under Larvotto’s proposal.
“Together, Austral Resources and Hammer will create a stronger platform to pursue our ambition of becoming Australia’s next mid-tier copper powerhouse.”