Diatreme Resources Extends Takeover Offer Period for Metallica Minerals
DIATREME RESOURCES LIMITED (DRX) Share Update July 2024 Tuesday 9th
Diatreme Resources Extends Takeover Offer for Metallica Minerals
Diatreme Resources Limited (ASX: DRX) has announced an extension to the offer period for its off-market takeover bid of Metallica Minerals Limited (ASX: MLM), alongside accelerated payment terms for shareholders who accept the offer.
Instant Summary:
- Offer period extended to 23 July 2024.
- 79.67% of Metallica shareholders have accepted the offer.
- Accelerated payment terms for shareholders accepting the offer.
Extension of Offer Period
Diatreme Resources Limited (Diatreme) has extended the offer period for its off-market takeover bid for Metallica Minerals Limited (Metallica) to 23 July 2024. The extension aims to provide additional time for Metallica shareholders to complete the necessary procedures to accept the offer.
As of 8 July 2024, 79.67% of Metallica shareholders have accepted the offer, which involves receiving 1.3319 ordinary shares in Diatreme for each ordinary share in Metallica. This extension is also part of Diatreme's strategy to meet the conditions for delisting Metallica from the ASX.
Acceleration of Payment Terms
Diatreme has announced accelerated payment terms for Metallica shareholders who accept the offer. Shareholders who accepted the offer before 7:00 PM (Sydney time) on 5 July 2024 will receive their consideration by 12 July 2024. Those who accept after this date will receive their consideration within 10 business days of acceptance.
Under these terms, shareholders who accept by 7:00 PM each Friday will receive their consideration in the following week. This change aims to expedite the process and provide quicker returns to shareholders.
Ineligible Foreign Shareholders and Small Parcel Holders
Metallica shareholders who are ineligible foreign shareholders or small parcel holders will not receive Diatreme shares under the offer. Instead, their shares will be sold by a nominee on the ASX, and they will receive cash from the net proceeds of the sale. Detailed information is available in clause 5.3 of the Offer Terms in Schedule 1 of the Bidder’s Statement.
How to Accept the Offer
Metallica shareholders can accept the offer by returning their acceptance form or contacting their broker. Alternatively, they can accept the offer online by visiting the provided link and following the instructions.
The extension and acceleration of payment terms are likely to positively impact Diatreme's stock as it demonstrates the company's commitment to completing the takeover. The quicker payment terms may also encourage more shareholders to accept the offer, potentially increasing Diatreme's control over Metallica.
Investor Reaction:
Investors have shown a positive reaction to the extension and accelerated payment terms, with many viewing it as a strategic move to solidify Diatreme's position. Analysts believe this could lead to a smoother transition and integration of Metallica's assets into Diatreme's portfolio.
Conclusion:
Investors should consider the potential benefits of accepting the offer before the new deadline. Diatreme's strategic moves indicate a strong commitment to the takeover, which could lead to long-term gains for shareholders. Stay informed and assess the impact on your portfolio.