The recent takeover battle for iron ore hopeful Polaris Metals has taken another turn with the company’s board declaring Lion-Asia’s latest offer of 70 cents cash per share to be better than last week’s offer by rival bidder Mineral Resources.
“The Polaris board considers the value provided under the improved Lion-Asia offer to be superior to the most recently announced improved (cash and script) offer by Mineral Resource,” the company said in a statement to the Australian Securities Exchange.
Polaris’ announcement in favour of the Lion-Asia offer comes after the company last week said it intended to recommend shareholders accept Mineral Resources’ offer, which represents 65 cents per share for Polaris shareholders.
The Polaris board has now recommended its share and options holders should not yet accept either offer.
According to the Polaris board, while combining with Mineral Resources will deliver significant synergies, the Lion-Asia offer provides more certainty and a better price for shareholders.
“The improved Lion-Asia offer of 70 cents cash per share represents a premium of 6% to the Mineral Resources offer,” the Polaris board said.
The increased takeover activity has seen Polaris shares continue to rise, yesterday increasing 7.5 cents, or 11.19%, to 74.5 cents per share.