Mineral exploration company Hannans Reward has urged its shareholders to take no action regarding the intended off-market takeover bid by Fox Resources.
While Fox Resources has not delivered a formal offer to the Board of Hannans, the company said the bid was unsolicited and thinks the proposed one Fox share for every two of Hannans shares is opportunistic.
Hannans managing director Damian Hicks said the company’s balance sheet and suite of quality exploration assets have no obvious synergies with the Bidder.
“Hannans holds quality exploration ground in the Forrestania, Pilbara and Eastern Goldfields regions of Western Australia, has $1.5 million in the bank and importantly no debt,” he said.
“There are no project synergies other than the fact that both companies are exploration companies exploring for minerals in Western Australia.”
According to a company announcement, two of Hannans previous directors Frank Cannavo and Terry Grammer had already given pre-bid acceptance to the Fox offer.
On Tuesday, six days after Fox Resources’ initial bid, Cannavo resigned from the Hannans Board while Grammer was asked to hand in his letter of resignation.