Alto Metals Ltd (ASX:AME) has issued a Second Supplementary Target’s Statement in which the company’s Board of Directors unanimously recommends that shareholders reject the unsolicited takeover offer by Middle Island Resources Ltd (ASX:MDI)
Alto Chairman Terry Wheeler said: “In the last few days you will have received a SEVENTH Supplementary Bidder’s Statement from Middle Islands Resources Limited, which, amongst other things, extends MDI's unsolicited, off-market, all-scrip takeover offer of 6 MDI ordinary fully paid shares for every 1 Alto share issued as part of Alto’s shortfall placement, which were issued on 13 May 2019.
“My advice to you as Chairman of AME and as a significant AME Shareholder in my own right and supported by the whole AME board hasn’t changed nor been influenced by any of the statements contained in MDI’s latest documents.
“We continue to unanimously recommend that you REJECT the Offer by simply ignoring all correspondence you receive from MDI.”
Middle island offer fails to gain traction
Notwithstanding MDI’s numerous communications with AME shareholders since the offer was announced on March 1 2019 (more than 7 months ago), the level of acceptances by AME's shareholders remains negligible, evidenced by MDI's disclosures regarding its Relevant Interest in AME's shares, as detailed in the table below:
As noted above, the last time MDI disclosed their voting power in AME was September 23 2019, when MDI disclosed that they held a 1.57% relevant interest in AME's shares.
Given the Corporations Act 2001 requires a bidder to provide substantial holding information each time there is a movement of at least 1% in its holding, MDI's holding in AME's shares remains minimal.