Lion queries Polaris acquisition

Polaris Metals' largest shareholder has raised concerns about the company's proposed acquisition by Mineral Resources.

Polaris Metals’ largest shareholder, Lion Diversified Holdings, has raised concerns about the company’s proposed acquisition by Mineral Resources.

In a statement released on Friday, a spokesperson for the company said, “We do not believe Mineral Resources’ conditional scrip offer adequately reflects the value of Polaris’ underlying assets.”

According to the statement, Lion is surprised that Polaris’ board supported the offer without fully exploring the opportunity for an appropriately priced cash takeover bid.

“It appears to us that Polaris may have rushed into recommending this transaction,” the spokesperson said.

“It may not be in the best interest of the minority shareholders.”

Polaris announced the proposal on 20 August.

Under the terms of the offer, Polaris shareholders will receive one Mineral Resources share for every 12.5 shares held.

According to the company, all of the directors intend to hand over their shares and options to Minerals Resources.

Lion holds an approximate 25.5% stake in Polaris Metals and is said to be considering its options.

Another major Polaris shareholder, Heron Resources has entered into a pre-bid acceptance agreement with Mineral Resources for its 19.9% stake.

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