Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has announced an increased offer for all the outstanding ordinary shares of DGO Gold (ASX: DGO).
The improved offer consideration is 2.25 Gold Road shares for every DGO share, compared to the previous offer of 2.16 Gold Road shares for every DGO share. The improved offer is best and final and there will be no increase in the offer except in limited circumstances.
Gold Road’s improved offer represents compelling value and a significant premium for DGO shareholders relative to the respective unaffected volume-weighted average share prices of both companies.
Gold Road has received acceptances from 21.5% of the DGO shareholders (as of 27 May 2022) and has the unanimous support from the DGO directors, in the absence of a superior proposal.
The payment terms of the offer have been accelerated to seven business days from 21 days. The improved offer is set to close at 7pm on 30 June 2022 and will not be extended except in limited circumstances, including where Gold Road’s voting power in DGO shares increases to 75% or more by close of trading on 21 June 2022.