PERTH (miningweekly.com) – ASX-listed Aurora Funds Management has warned of a possible defeating condition for its proposed bid for fellow-listed Molopo Energy of 18c a share.
Molopo on Thursday went into a trading halt pending the announcement of a strategic investment, which the company said it had already completed, and was now finalising a technical announcement on the transaction.
Aurora on Friday said that under ASX listing rules, Molopo was required to obtain shareholder approval for any proposed transaction that would result in a significant change in the nature or scale of activities.
“Entering into a strategic investment without shareholder approval may trigger a defeating condition under Aurora’s proposed takeover bid, potentially denying Molopo shareholders the opportunity to participate in the significant premium to Molopo’s recent market price afforded by the takeover bid,” Aurora said in a statement.
Edited by: Creamer Media Reporter
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