Matsa Resources (ASX:MAT) is advising its shareholders take no action regarding yesterday’s (10 February) unsolicited on-market takeover bid by Patronus Resources (ASX:PTN).
Matsa is considering the unsolicited offer and intends to provide its recommendation to shareholders via the release of a target statement in the coming weeks.
The target has appointed Thomson Geer as legal advisor in relation to the offer. Patronus has engaged Sternship Advisers to act as its financial advisor and Blackwall Legal to act as its legal advisor with respect to the offer.
Euroz Hartleys, on behalf of Patronus, is offering to acquire Matsa on market at a price of $0.045 cash per share. Matsa closed trade on the Australian Securities Exchange (ASX) on 10 February 11.904% higher at $0.047 per share following the takeover announcement.
Patronus Resources’ broker will stand in the market on behalf of the bidder and accept Matsa shares offered at the offer price. The offer will officially be made from 24 February and ending on 24 March 2025 unless extended by Patronus.
Euroz Hartleys notes the bidder and its associates have voting power of 19.57% of all Matsa shares on issue.
The $0.045 cash per share offer implies an equity value for Matsa of about $33 million. The offer represents a 12.5% premium to the last traded price of Matsa shares on 6 February, a 60.7% premium to Matsa’s placement issue price of $0.028 on 16 September 2024, and an 18.4% premium to its placement issue price of $0.038 announced on 30 January 2025.
Patronus believes the offer provides Matsa with attractive, certain, and immediate value for while also removing potential risks associated with Matsa’s funding of its ongoing exploration and development activities and the repayment or refinance of its existing indebtedness.
Patronus has made the offer with the intention of increasing its ownership in Matsa and will seek to potentially restructure the existing Matsa board and management and conduct a strategic review of the target’s asset base.
“Patronus is supportive of Matsa securing additional equity funding to repay Matsa’s existing indebtedness in order to concurrently remove the security claims provided to these existing secured debt providers,” the bidder says.
Write to Adam Orlando at Mining.com.au
Images: Matsa
