Central Australian Phosphate (ASX: CEN) has advised its shareholders to “take no action” on Rum Jungle Resources’ (ASX: RUM) A$12.7 million off-market takeover bid.
The company received the $0.0215 per share offer today and plans to review the offer documents once received before providing a formal recommendation on the bid.
Rum Jungle Resources is offering one of its shares plus $0.20 cash for every 20 Central Australian Phosphate shares, representing a 43.3% premium to the closing price of Central Australian Phosphate shares on 12 February 2013.
It is also a 34.4% premium to the price of the recent rights issue and a 35.3% premium to the one-month volume weighted average price of Central Australian Phosphate shares.
Rum Jungle said the rationale behind the offer provides benefits from combining the two companies into a larger company – as they both have complementary assets.
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Central Australian Phosphate says “take no action” on $12.7M takeover offer
Last updated: 16:20 13 Feb 2013 AEDT, First published: 15:20 13 Feb 2013 AEDT