NST gets mentioned in today's The Aus Business Review:
Tribune, Rand reject Northern Star offer for gold stakes
Northern Star managing director Bill Beament. Pic: Bloomberg
Enigmatic gold miners Tribune Resources and Rand Mining have formally rejected a $150 million offer from Northern Star for their stakes in the East Kundana gold mine in Western Australia’s gold fields.
As foreshadowed by The Australian last week, Rand and Tribune – which share common management, directors, offices and shareholders – told Northern Star that its offer “significantly undervalued” the pair’s interests in East Kundana.
Tribune and Rand hold 36.75 per cent and 12.25 per cent stakes respectively in East Kundana, with Northern Star owning the balance.
The offer from Northern Star came as Rand and Tribune were under intense scrutiny from the Takeovers Panel over their contentious ownership structure and disclosures.
Northern Star again highlighted those governance issues when announcing the rejection of its offer this morning.
“As a shareholder in both Tribune and Rand, Northern Star remains concerned about the Takeovers Panel September 14, 2018 declaration of unacceptable circumstances against Tribune and Rand controlling shareholders, with respect to their nondisclosure of controlling shareholdings in Tribune and Rand,” Northern Star said.
“Northern Star continues to believe its cash offer is a fair and sensible pathway for Tribune and Rand shareholders to unlock the value of their company’s interests in the EKJV, particularly in view of the December 19, 2018 admissions by and existing Tribune and Rand director and by controlling shareholders in Tribune and Rand of past and ongoing breaches of the Corporations Act and the ASX Listing Rules.”
Tribune and Rand have been weighing up whether to make a counteroffer for Northern Star’s stake in East Kundana, but there was no update from either company today on that option.
Rand and Tribune said the decision to reject the offer had been based on qualitative factors, such as the “opportunistic” timing following the Takeovers Panel ruling, and advice from their financial adviser Argonaut.
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