Realm Resources rejects Taurus takeover bid as ‘inadequate’

The Foxleigh mine.

Coking coal producer Realm Resources has released a statement advising shareholders not to act on an unsolicited, off-market takeover offer from Taurus Resources, first announced February 9.

“Realm shareholders are advised to TAKE NO ACTION (emphasis Realm) at this stage in relation to the proposed takeover or in response to any document that may be received from Taurus in relation to the proposed takeover, including any bidder’s statement, until they receive further guidance from the company,” advised the report.

Taurus first sent Realm a proposal in December last year to acquire 100 per cent of Realm company shares it didn’t already own for 90 cents per share, subject to conditions.

Realm has cited Taurus’s offer as inadequate, and has subsequently returned requested due diligence information to Taurus to allow them the opportunity to improve the terms of the offer and remove its conditionality.

Last August, former company managing director Glen Lewis resigned from Realm, citing personal reasons. He was replaced by Michael Rosengren, who started in the role last month.

The company is most known for its Foxleigh mine in central Queensland; Realm subsidiary Middlemount South purchased a 70 per cent interest in the mine from Anglo American in 2016.

Taurus Resources (Fund Number Two) in turn owns 87.8 per cent of Realm. It also owns a 51 per cent interest in Indonesian coal producer PTKR’s Katingan Ria project through its ownership of Kalres.

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