Mako Gold Directors Recommend Acceptance of Aurum's Final Offer
MAKO GOLD LIMITED (MKG) Share Update January 2025 Thursday 9th
Mako Gold's Independent Directors Urge Shareholders to Accept Aurum's Final Offer
Mako Gold Limited's independent directors have advised shareholders to accept Aurum Resources Limited's final takeover offer, citing limited future opportunities for a better proposal.
Instant Summary:
- Aurum Resources holds 86.83% of Mako shares.
- Offer is declared best and final with no further increases.
- Shareholders face limited liquidity if they do not accept.
- Deadline for acceptance is 31 January 2025.
Background of the Offer
Mako Gold Limited (ASX: MKG) has been the subject of an off-market takeover offer by Aurum Resources Limited since October 2024. The offer, which was announced alongside a Bid Implementation Agreement, has now been declared best and final by Aurum, meaning no further increases in the offer consideration will be made.
Aurum currently controls 86.83% of Mako shares, effectively placing it in control of the company. This significant majority has allowed Aurum to appoint a majority of the board of directors at Mako, further solidifying its influence.
Independent Directors' Recommendation
The independent directors of Mako, Peter Ledwidge and Michele Muscillo, have unanimously recommended that shareholders accept the offer without delay. They emphasize the risk of remaining a minority shareholder with limited influence and liquidity if the offer is not accepted by the deadline of 31 January 2025.
The directors have expressed that it is highly unlikely a superior proposal will emerge given Aurum's current control and the declared finality of their offer.
Next Steps for Shareholders
Shareholders who wish to accept the offer should do so promptly to avoid the risks associated with minority shareholding. Acceptance forms and further information can be obtained through the Offer Information Line, ensuring shareholders have the necessary resources to make an informed decision.
The recommendation from Mako's independent directors is likely to increase the acceptance rate of Aurum's offer, potentially leading to Aurum reaching the 90% threshold required for compulsory acquisition. This could consolidate Aurum's control over Mako, impacting the stock's liquidity and market perception.
Investor Reaction:
Analysts are likely to view the directors' recommendation as a strong indicator of the inevitability of Aurum's takeover. While some investors may be disappointed by the lack of competing offers, the certainty provided by the directors' endorsement could be seen as a stabilizing factor for the stock.
Conclusion:
Investors in Mako Gold should carefully consider the directors' recommendation and the potential implications of remaining a minority shareholder. Accepting Aurum's offer could provide a clear exit strategy and avoid future liquidity issues.