Panoramic Resources has responded to Independence Group’s (IGO) ‘highly conditional’ takeover offer for the company, saying it has breached certain conditions and will likely do so again.
The target company was required to appoint a technical expert at its own cost to complete a report on the Savannah operation in Western Australia, which it hasn’t done within the expected period.
Under the takeover conditions, Panoramic is also restricted in its capital expenditure during the offer period and obliged to provide due diligence access to IGO.
Other conditions aim to dictate how the board of Panoramic should respond to IGO’s takeover offer, while restricting its ability to take routine actions.
Panoramic stated that its board would continue to prioritise the best interests of the company’s shareholders and make operating decisions as it deemed necessary.
“Given the nature of the conditions, in addition to the above breaches, there are likely to be further breaches in the future,” Panoramic stated.
“It is open to IGO to rely on any breach of a condition to terminate the offer, or to waive any breach. … However, it is in the interests of Panoramic shareholders that IGO make such decisions quickly and provide an update as soon as possible.”
Panoramic expects to provide its shareholders with a formal recommendation on the offer in due course. In the meantime, the company encourages shareholders to take no action.
The target’s key shareholder Zeta Resources has also responded to IGO’s takeover offer, describing it as “unsolicited” and “opportunistic.”
Zeta is confident the long-term outlook on nickel prices is positive, and believes Savannah North is an attractive and strategic asset.
The company doesn’t intend to accept IGO’s current offer, but is open to a superior proposal from IGO or other bidders.