Azumah Resources Limited (ASX:AZM) has advised shareholders to take no action in relation to the unsolicited off-market cash takeover offer made on behalf of private equity group, Ibaera Capital Fund GP Limited.
The company’s board has given this advice in order to provide time for it to consider and make a formal recommendation on the 2.8 cents per share offer which was made on Wednesday, September 18.
By the close of trade on Thursday Ibaera had increased its substantial holding in Azumah to 21.54% from 17.66% the previous day.
In a statement today Azumah said: “In the meantime, the board notes that in 2018, Ibaera paid up to 3.7 cents per Azumah share in acquiring its current holding.”
The company said this highlighted “that Ibaera has been prepared to pay substantially more for Azumah shares than it is offering Azumah shareholders under the current offer”.
The two parties hold the Wa Gold Project in Ghana in a joint venture with Ibaera being the project manager.
Azumah said that the earliest Ibaera’s offer could open was October 2, 2019, and that it must remain open for a minimum period of one month.
Leading up to this the board will prepare and issue a Target’s Statement in response to Ibaera’s Bidder’s Statement.
The Target’s Statement will allow all shareholders to properly consider their options before making any decision in relation to their shareholding and the offer.
Azumah shares are today trading at 2.8 cents.