Aurora makes a play for Molopo Energy

PERTH (miningweekly.com) – ASX-listed Aurora Funds Management has announced plans to make a takeover offer of 18c each for the shares in fellow-listed Molopo Energy.

Under the proposed bid, Molopo shareholders will be able to elect to receive the bid consideration in either cash, which will be capped at A$5-million in total, or in Aurora shares.

Aurora on Thursday pointed out that the proposed offer was 33.8% above the 30-day volume weighted average share price of Molopo on the ASX, and 27.5% above the 60-day volume weighted average price.

The takeover bid was intended to unlock the inherent value in Molopo, as well as its cash assets, Aurora said in a statement. The ASX-listed company added that if it was able to gain control of Molopo, it intended to seek to return a ‘material amount’ of capital to shareholders, subject to a review of the company’s liabilities.

The remaining cash assets would then be invested until the resolution of Molopo’s litigation, at which point further capital returns would be considered.

Molopo in April this year made an application to the Takeovers Panel seeking a declaration of unacceptable circumstances in relation to, amongst other things, the conduct of two of its substantial shareholders, Keybridge Capital and Aurora.

An application was also made by the Australian Securities and Investments Commission (ASIC) on the same date.

At the end of May, the initial Panel made a declaration of unacceptable circumstances but did not find an association between Keybridge and Aurora.

Both Molopo and Keybridge lodged review applications in June, and later that month the Panel received an application from Aurora seeking a review of the initial Panel’s decision on orders.

In July, the review panel made a declaration of unacceptable circumstances, and as a result some 3.6-million Molopo shares held by Keybridge and 39.5-million Molopo shares held by Aurora - being the Molopo shares they acquired since August 2016 - were to be vested in ASIC for sale.