Aurum Resources Takes Control: Mako Gold's Takeover Offer Update
MAKO GOLD LIMITED (MKG) Share Update November 2024 Thursday 28th
Aurum Resources Gains Control Over Mako Gold with 58% Share Acquisition
Mako Gold Limited has announced that Aurum Resources Limited has successfully acquired a controlling interest in the company, marking a significant step in the ongoing takeover offer.
Instant Summary:
- Aurum Resources acquires 58% of Mako Gold's ordinary shares.
- Takeover Offer declared unconditional as of 22 November 2024.
- Offer scheduled to close on 4 December 2024 at 7:00pm Sydney time.
- Mako directors recommend acceptance of the offer.
- Shareholders urged to accept before the deadline to receive offer consideration.
Takeover Offer Progress
Aurum Resources Limited has made significant progress in its takeover bid for Mako Gold Limited, acquiring a 58% interest in Mako's ordinary shares. This acquisition was achieved through an off-market takeover offer initially announced on 11 October 2024. As of 22 November 2024, Aurum declared the offer unconditional, solidifying its position in the takeover process.
The takeover offer is set to close at 7:00pm (Sydney time) on 4 December 2024, unless an extension is announced. Mako Gold has urged shareholders to act promptly to accept the offer, as any acceptances received after the deadline will not be valid. If Aurum does not extend the offer and does not proceed to compulsory acquisition, remaining shareholders may miss out on the offer consideration.
Board Recommendations
The directors of Mako Gold have unanimously recommended that shareholders and option holders accept Aurum's offer in the absence of a superior proposal. Given Aurum's controlling interest, Mako believes it is unlikely that a better offer will emerge.
Shareholders who have already accepted the offer need not take further action. Those who have not yet accepted are encouraged to do so promptly. Detailed instructions for acceptance are provided in the Bidder's Statement, specifically in sections 2 and 13.3 for shares, and sections 2 and 14.4 for options.
The acquisition of a controlling interest by Aurum Resources is likely to stabilize Mako Gold's stock in the short term as the market absorbs the news. The recommendation from Mako's board adds credibility to the offer, potentially leading to a positive reaction from investors who may see this as a strategic alignment with a more resourceful entity.
Investor Reaction:
Analysts are likely to view Aurum's acquisition as a positive development for Mako Gold, given the backing of a larger company with more resources. However, some investors may remain cautious until the takeover is fully completed and the implications for Mako's future strategy become clearer.
Conclusion:
Investors should consider the board's recommendation and the strategic benefits of accepting the takeover offer. With the deadline approaching, timely action is crucial to secure the offer consideration. Monitoring further announcements from Aurum and Mako will be essential for informed decision-making.