News: Phoenix Gold board says take no action in relation to Evolution takeover offer

Phoenix Gold's (ASX:PXG) board of directors has advised shareholders in a statement to take no action in relation to Evolution Mining’s (ASX:EVN) takeover offer of 0.06 EVN shares and $0.06 cash for each share of the company.

It noted the offer contains certain conditions including the spot gold price not falling below A$1,250 per ounce.

Evolution’s bid arose as a counter offer to Zijin Mining Group Co., Ltd’s (SHA:601899, HKG:2899) $0.10 per share cash offer

Earlier this month, PXG urged shareholders to reject Zijin’s takeover offer as it was inadequate and did not reflect fair value.

The Independent Expert valued a Phoenix share at between $0.156 and $0.244. Shares in PXG last traded at $0.125.

Evolution is Phoenix’s largest shareholder with 93 million shares, or a 19.78% stake, in the company.

Dale Rogers, PXG executive chairman, commented:

“The Directors of Phoenix will review Evolution’s Bidder’s Statement and respond formally through a Target’s Statement in due course.

“Until the Phoenix Board provides shareholders with a formal recommendation we advise all shareholders to take no action.”


Evolution Offer

The Evolution bid was made at a headline price of $0.12 per Phoenix Share, representing a 20% premium to the Zijin Offer.

Shares in EVN last traded at $1.135, valuing the offer at $0.128 per PXG share.