Atlas Iron chairman Eugene Davis has released a statement to shareholders regarding the proposed $280 million scheme of arrangement announced last week with Mineral Resources.
The Atlas board has unanimously approved the deal, recommending shareholders vote in favour in the absence of a superior offer.
Davis outlined reasons for the recommendation, explaining that the offer represented an “attractive premium” of 59 per cent on Atlas’ last trading day rate before the transaction was announced, and 28 per cent on the company’s 30-day, volume-weighted average price (VWAP).
In addition, Davis stressed that Atlas’ shareholders would still retain ownership of assets as part of the acquisition, and gain “exposure to a diversified company with a strong balance sheet and a track record of paying regular dividends”.
However, he also stressed that the company was yet to appoint an independent expert to determine the benefits of MinRes’ proposal for Atlas shareholders — this is expected to be released in June 2018.
“I am aware that there has already been some commentary on online investor forums on the merits or otherwise of the proposed transaction,” said Davis.
“I would like to take this opportunity to respectfully ask shareholders to wait until the full facts are available via the court-approved scheme booklet before deciding on the merits of the transaction.”