Copper-focused explorer Helix Resources (ASX:HLX) has been handed a partial takeover offer from private Australian investment firm Acta Investment Group and its associate Nuevo Royalty.
Acta is offering shareholders $0.005 cash per share, reduced by any dividends or distributions declared, for 25% of the Helix shares Acta and Nuevo do not currently own.
The firm says the offer represents a 39% premium to Helix’s 30-day volume average weighted price of $0.0036.
Helix has advised shareholders to “take no action” on the “unsolicited and highly conditional” offer.
Both Acta and Nuevo are owned by veteran resources investor Michael Povey, who took a substantial 6.51% stake in Helix just last week.
Povey’s over 30-year career as a mining engineer across a range of commodities includes stints at major mining companies including Rio Tinto (ASX:RIO) and Anglo American (LSE:AAL).
Following the news, Helix shares rallied 25% to $0.005. It has a market capitalisation of around $13.05 million. The junior had cash on hand of $2.74 million at the end of the June quarter.
Acta and Nuevo currently own 307.5 million shares, or 9.42%.
If the deal goes ahead, the pair will own less than 32.1% of all Helix shares on issue.
Acta says the offer represents an opportunity for Helix shareholders to realise cash at a premium for a portion of their shares.
“From May 2021 to May 2024, the Helix share price lost almost 90% of its value. Having raised over $12 million, there is very little shareholders have to show for the significant amount of capital invested over this period,” Acta says.
“The management team that oversaw the use of these proceeds remains in place at Helix. Whilst exploration has intrinsic risks, Acta believes a fresh approach is required to improve outcomes.”
The suitor also notes it is seeking support for changes which Nuevo has proposed to the board.
This includes overseeing the appointment of a board and management team “entirely focused on generating returns for shareholders”.
Acta’s Bidder’s Statement is expected to be released within two months.
Write to Angela East at Mining.com.au
Images: Helix Resources
