EganStreet Resources Ltd (ASX:EGA) has had the takeover offer from Silver Lake Resources Limited (ASX:SLR) declared unconditional with Silver Lake now holding more than 40% of shares, above the 38% threshold.
This means that Silver Lake has increased the offer to 0.431 of its shares for each EganStreet share held and values EganStreet at 50 cents per share which implies a $68 million transaction enterprise value.
The new consideration represents an increase in value relative to the 0.27 Silver Lake shares for each EganStreet share contemplated in the Bidder’s statement dated August 14, 2019.
It also exceeds the 0.4 shares offered in an improved offer made on Monday this week, although it is one of the stated conditions of that offer.
Payment of the consideration will be made within seven days of receipt of valid acceptances or within seven days of the offer being declared unconditional for those that have already accepted the offer at that time.
“Pleased” with agreement
At the time of the improved offer, EganStreet managing director Marc Ducler said, “We are pleased to have reached an improved agreement with Silver Lake.
“We believe this offers shareholders the best possible chance to realise the full value of the work we have completed in advancing the Rothsay project to its current position.”
EGA said in a statement: “By accepting the improved offer, EganStreet shareholders will benefit by maintaining a level of exposure and share price upside that may be generated through the integration of the Rothsay project into a company with established proximal infrastructure and demonstrated exploration success in growing the mineral resource base of narrow, high-grade gold deposits.
“More broadly, the scrip consideration provides the opportunity for EganStreet shareholders to become part of a financially stronger company with a stable platform of established Western Australian operations and a high-quality team with a proven focus on cash flow generation, in an environment with a positive outlook for gold prices.”