Total
0
Shares
Azumah (ASX:AZM) Approaches Compulsory Acquisition
  • Azumah Resources (AZM) is nearing a compulsory takeover by Ibaera Capital
  • As of January 14, Ibaera owns 88.85 percent of Azumah's shares
  • Ibaera has indicated it intends to increase that number to 90 percent or more
  • Azumah's Independent Director is encouraging shareholders to accept an offer by Ibaera before 7pm on January 17
  • Azumah Resources remains unchanged, selling for 3.3 cents apiece at market close

Azumah Resources (AZM) is getting closer to a compulsory takeover by Ibaera Capital.

Ibaera now owns 88.85 percent of Azumah's shares (as of January 14), and is able to control the composition of the companies board.

Ibaera will also be able to pass any resolution of Azumah shareholders where it is eligible to vote.

If Ibaera acquires 90 percent or more of Azumah's shares, which it has said it intends to do, any shareholders that have not accepted an offer before it closes, will have their shares compulsorily acquired.

In addition, they will face an extended time frame for receipt of their consideration.

In it's bidders statement, Ibaera has also indicated that it may seek permission to remove Azumah from the ASX, even if Ibaera is not entitled to proceed with the compulsory acquisition.

In this event, shareholders that have not accepted the offer will become shareholders in an unlisted company.

The liquidity in Azumah shares would also likely be significantly reduced as a result of there no longer being a readily available market for trading in the shares.

If Azumah stays on the ASX, share prices may fall and trade at a material discount.

Azumah's independent Director is encouraging shareholders to accept the offer in order to avoid being a shareholder in an illiquid company.

The offer closes at 7pm AEDT on January 17.

Azumah Resources remains unchanged, selling for 3.3 cents apiece at market close.


Subscribe


AZM by the numbers
More From The Market Herald
Ardent Leisure Group (ASX:ALG) - Non Executive Chairman, Dr Gary H Weiss - The Market Herald

" Ardent Leisure Group (ASX:ALG) announces re-open date for Dreamworld

Ardent Leisure Group (ALG) has announced it will reopen Dreamworld and Whitewater World after receiving financial assistance from the Queensland Government.
Macarthur Minerals (ASX:MIO) - General Manager, International Sales and Marketing, Jonghyun (Richard) Moon (centre) - The Market Herald

" Macarthur Minerals (ASX:MIO) nears OTCQB listing

Macarthur Minerals (MIO) has cleared the final regulatory hurdle and can now re-list on the OTCQB.
Suvo Strategic Minerals (ASX:SUV) - Executive Director, Aaron Banks (left) and Robert Martin, Executive Chairman (right) - The Market Herald

" Suvo Strategic Minerals (ASX:SUV) shares skyrocket 1700pc in first day of trading

Suvo Strategic Minerals’ (SUV) shares have skyrocketed 1700 per cent after officially commencing trading on the ASX this morning.
Rio Tinto (ASX:RIO) - CEO, Jean Sébastien Jacques - The Market Herald

" Rio Tinto (ASX:RIO) to face Inquiry Committee for blasting Juukan Gorge rock shelters

Rio Tinto (RIO) has made a detailed submission to the Australian Parliamentary Inquiry, admitting its regret for blasting the Juukan Gorge 1 and