The board of Dioro Exploration has once again urged its shareholders to reject the unsolicited takeover offer from Avoca Resources.
In a statement to the Australian Securities Exchange, the board maintained that Avoca’s bid undervalued Dioro’s assets and that it is not in the company’s best interest.
“An evaluation of all available materials surrounding the bid, by both the company and its advisors, has confirmed the board’s belief that the bid is not in the best interest of shareholders,” Dioro said in the statement.
Since making an initial bid in May of one share for every 2.82 Dioro shares, Avoca has since increased the deal to one share for every 2.4. On Monday Avoca also made the deal unconditional.
The attempts to improve the offer have failed to move Dioro’s board, which has told shareholders to ignore it from the beginning.
Dioro said in the statement that, despite Avoca suggesting a bid from other companies is unlikely, it remains in “meaningful” discussion with third parties.
“Since the initial bid was made the Dioro board has worked diligently to evaluate all possible opportunities and importantly produce an outcome that it believed was in the best interest of all shareholders,” Dioro said.
“This position has not changed and in fact has intensified in recent weeks.”