Private equity firm, Ibaera Capital now holds a relevant interest in Azumah Resources of 88.85% following last year’s takeover bid that is now close to being wrapped up.
With all Azumah directors and major shareholders having now accepted Ibarea’s offer of 3.3 cents per share, Azhuma’s sole independent director has encouraged all remaining holders to accept the offer before the closing date of the 17thof January. The offer was initially made at a 136% premium to Azumah’s closing price at the time.
If Ibaera acquires 90% or more of Azumah’s shares, it will likely move to compulsorily attain any remaining shares under Australian corporations law. The timeframe for Ibaera to pay out the remaining shareholders under a compulsory acquisition scenario is not clear.
Importantly, Azumah said that Ibaera has tabled its intention to delist the company, which means that any remaining shareholders would lose the opportunity to trade their shares on the open market and the protections and transparencies that usually come with a public company would potentially be reduced.
If Azumah remains on the ASX, share liquidity will be significantly reduced due to the large stake held by one party.
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By Matt Birney
