Metallica Minerals Limited (ASX: $MLM) has lodged its third supplementary target's statement dated 18 June 2024 in response to the off-market takeover bid from Diatreme Resources Limited (ASX: $DRX). The statement provides updates on the unconditional nature of DRX's bid and the MLM directors' continued recommendation for shareholders to reject the offer.
The MLM directors continue to recommend that MLM shareholders reject the Offer and reiterate the intention that each of the directors intend to reject the Offer in respect of their own holding of Metallica Shares. The board of MLM notes that DRX is well short of the compulsory acquisition threshold of 90% and highlights the Metallica Mineral's Small Shareholder Action Group's reluctance to accept the Offer without an increase in the offer consideration or some other improvement in deal terms. Additionally, DRX's indication of seeking to remove MLM from the official list of ASX if it gains effective control of at least 50.1% of MLM shares but is unable to proceed to compulsory acquisition raises concerns. The MLM board believes it unlikely that it will agree to the appointment of DRX nominees on the board, at least while the bid remains open for acceptance.
Metallica Minerals Limited has responded to Diatreme Resources Limited's unconditional off-market takeover bid by lodging a third supplementary target's statement. The statement emphasizes MLM directors' recommendation for shareholders to reject the offer and highlights the concerns regarding DRX's intentions, including the potential removal of MLM from the official list of ASX. The board of MLM considers it unlikely to agree to the appointment of DRX nominees on the board while the bid remains open for acceptance. Furthermore, the statement addresses the protection under the Listing Rules for MLM shareholders seeking to retain economic exposure to MLM's primary asset. The outlook suggests that the MLM board will continue to resist DRX's attempts to gain control and influence over the company's operations and governance.