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  • Fitzroy River has submitted a takeover bid to Royalco Resources
  • Fitzroy currently owns 47.76 per cent of Royalco and will purchase the remaining shares at a price of 24 cents
  • The offer is valued at $6.61 million, representing a 20 per cent premium
  • Both companies are steady today, with Fitzroy trading for 16 cents and Royalco trading for 19 cents

Fitzroy River Corporation has announced an off-market takeover bid to purchase Royalco Resources.

The investment company already owns 47.76 per cent of Royalco.

As it stands, the offer price is 24 cents cash for each Royalco share that Fitzroy River doesn’t already own. This equates to a $6.61 million takeover offer.

However, the offer will be subject to stringent conditions, including a minimum acceptance condition of 90 per cent, a market fall condition, and no prescribed occurrences during the offer period.

The offer targets approximately 27.53 million Royalco shares currently held by three substantial holders. These major stakeholders control 23.78 million shares, representing a 45.11 per cent slice of the Royalco capital pie.

The remaining stocks are held by approximately 160 smaller shareholders controlling 3.75 million shares, comprising 7.13 per cent of Royalco’s issued capital.

“Fitzroy’s offer represents a 20 per cent premium to Royalco’s 3 and 6-month VWAP and provides Royalco shareholders with a liquidity event to sell all their shares, compared to the infrequent and low volume trades of Royalco shares on ASX,” Fitzroy Chair Malcolm McComas said.

On November 13, both Fitzroy and Royalco entered a trading halt, with both companies requesting to remain off the market until tomorrow.

At 11:48 am AEDT, both the companies share price remains steady, with Fitzroy shares trading for 16 cents apiece and Royalco shares trading for 19 cents apiece.

FZR by the numbers
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