PXG response from Zijin's revised bidders statement
The only relevant interest in Phoenix shares that Zijin has disclosed is the 8.91% it holds via Norton Gold Fields Ltd and the 9.03% interest it obtained via a pre-bid agreement with Geologic which remains subject to various walk-away rights for Geologic, including the emergence of a superior proposal. There is no other information in the Replacement Bidder’s Statement as to the extent to which other shareholders may be included to accept the Zijin Offer to support the statement that a “significant proportion of Phoenix Shareholders will accept the Offer” as disclosed.
I believe EVN have announced their intention to takeover PXG to allow them to deal with Geologic to obtain their relevant 9.03% shareholding.
Now that their is a superior offer on the table, geologic can walk away from their pre-bid agreement with Zijin.
This is very important from a strategic perspective.
The 12c price is just the beginning, in my opinion. Once Zijin realisie that Geologic will bail out on them and that EVN have now come to the table, Zijin will be competing against EVN who will hold close to 30% of the stock.
In my opinion, it will need to blow EVN out of the park if it has any chance of getting a piece of PXG.
PXG Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
