Avoca announces Unconditional Takeover Offer for Dioro
valued at $1.25 per share
Highlights of the Offer
- ASX 200 mid-tier gold producer, Avoca Resources Ltd (ASX:AVO),announces an unconditional offer for Dioro Exploration NL (ASX/TSX:DIO) valued at $1.25 per share ("the Offer").
- The Offer price is FINAL.
- Avoca's Offer to Dioro shareholders will comprise a cash and scrip component. For each Dioro share held, accepting Dioro shareholders will receive:
- $0.65 in cash; and
- 0.325 Avoca shares.
- Avoca will also offer accelerated payment terms. Dioro shareholders who accept the Offer will be sent their cash consideration and be issued with Avoca shares within 3 business days of receipt by Avoca of a valid acceptance.
- Avoca's unconditional offer is superior to Ramelius Resources Ltd's ("Ramelius") last and final offer for a number of reasons, including that:
- the implied value of Avoca's offer represents an 8.2% premium to the $1.155 implied value of the Ramelius offer (as announced by Ramelius on 18 December) and a 7.2% premium to the $1.165 implied value of the Ramelius offer on 24 December 2009;
- Dioro shareholders will receive a large portion of the consideration offered for their shares in cash; and
- it provides Dioro shareholders with exposure to a substantial Combined Group - having a resource base in excess of 4,000,000 ounces and forecast FY 2010 gold production of approximately 270,000 ounces.
- Avoca is already the largest shareholder in Dioro with a relevant interest of 44.85% as well as holding options representing a further 3.2% of Dioro's issued shares on a diluted basis.
- The Combined Group will be a leading, growth oriented, WA-focused gold company with:
- forecast gold production of approximately 270,000 ounces in FY2010;
- a resource base in excess of 4,000,000 ounces of gold;
- low cash operating costs and potential operational synergies;
- a strong and highly credentialed Avoca management team;
- greater market liquidity and access to capital markets with strong institutional support; and
- a strong position in the Australian gold industry for further growth.
Details