Iron ore-focused Fenix Resources has announced it has elected not to exercise a matching right in relation to its bid for CZR Resources.
Iron ore-focused Fenix Resources has announced it has elected not to exercise a matching right in relation to its bid for CZR Resources.
In a statement to the market on Thursday, John Welborn-chaired Fenix said it would remain focused on its existing portfolio within the Mid West.
“Fenix’s board has carefully considered the strategic rationale for the takeover offer and the company’s commitment to a disciplined approach to growth transactions and the allocation of capital,” the company said.
“Recognising the exciting growth opportunities available within Fenix’s existing Mid-West footprint, the Fenix Board has notified CZR of the decision not to exercise the matching right.”
During an investor call on Wednesday, Mr Welborn said the board had been “carefully considering our opportunities to amend our existing offer or propose an alternative offer” and that a decision would be made on the matter before Easter.
In February, Fenix made a $71 million bid for Mark Creasy’s CZR, with hopes of attaining its 85 per cent stake in Robe Mesa iron ore project.
Since then, additional bids – $73 million from Gold Valley Group and $75 million from the Robe River joint venture, owned by Rio Tinto and Mitsui & Co – have surfaced.
As with Fenix, Gold Valley Group’s bid for CZR was for both company and project, while the Robe River bid is solely for the Robe Mesa stake.
CZR’s board still backed Fenix’s bid following interest from Gold Valley Group, however the Robe River JV bid was deemed more favourable for its shareholders.
Fenix last traded at $1.75, up 2 per cent, as of 8.13am AWST.
