Cyprium Metals turns down acquisition offer

Cyprium Metals (ASX:CYM) has rejected a non-binding offer from Appian Capital Advisory LLP to acquire its entire share capital at A$0.035 per share. The board concluded that the offer did not reflect the company's inherent value and was not in the best interests of shareholders.

Cyprium Metals announcement summary

Cyprium Metals has rejected an indicative non-binding offer from Appian Capital Advisory LLP, which was deemed inadequate in terms of reflecting the company's true value and was not aligned with shareholder interests. The board highlighted the complexity and conditionality of the offer, which included several potential barriers to execution. Cyprium is focused on maximizing shareholder value through its existing projects, particularly the redevelopment of the Nifty Copper Complex in Western Australia. The company remains committed to its strategic goals and maintains transparency with shareholders by disclosing the offer. Legal advisory is provided by King & Wood Mallesons. Cyprium's focus remains on its copper resources in Western Australia, aiming to leverage existing infrastructure and investments for future growth.

Executive commentary on offer rejection

The offer price was not considered to reflect Cyprium's inherent value. The conditionality of the offer was complex, with potential barriers including: Exclusive due diligence period, Unanimous board approval, Binding support from major shareholders, A 90% minimum acceptance condition for a takeover, Foreign Investment Review Board approval, Finalization of implementation agreements, Restrictions on property disposals.