Gold Road Resources Limited (ASX: GOR) is pleased to announce an unconditional off-market takeover offer of $0.56 cash per share to acquire all of the issued and outstanding ordinary shares in Apollo Consolidated Limited (ASX: AOP).
Gold Road’s offer provides Apollo shareholders with a compelling opportunity to realise certain and near-term value for their shares at an offer price that represents the all-time highest price paid for an Apollo share.
- Gold Road makes an unconditional off-market takeover offer for Apollo Consolidated Ltd following prior engagement with Apollo and due diligence access.
- All cash offer of $0.56 per share, implying an Apollo equity value of approximately $166 million (fully diluted basis).
- Offer represents a compelling opportunity for Apollo shareholders to realise certain and near-term value compared to Ramelius Resources’ highly conditional scrip and cash offer announced on 18 October 2021.
- Gold Road’s offer of cash represents a premium to the current value of Ramelius’ cash and scrip offer of $0.554.
- Gold Road is Apollo’s largest shareholder having acquired 19.9% of Apollo’s issued shares from key Apollo shareholders.
- The Gold Road offer represents a superior proposal to the highly conditional Ramelius offer, with several conditions of theirs now incapable of satisfaction.
- The Gold Road offer price represents the all-time highest price paid for an Apollo share.
- The Gold Road offer price represents an attractive and significant premium compared to Apollo’s trading levels prior to 14 October 2021, the last trading day prior to the announcement of Ramelius’ highly conditional proposal:
- 6% to the last closing price of Apollo shares immediately prior to the Gold Road offer;
- 40% over the 30-day volume weighted average price of $0.400 of Apollo shares up to 14 October 2021 (last trading day prior to the Ramelius Offer); and
- 73% over the 6-month volume weighted average share price of $0.324 of Apollo shares for the period up to 14 October 2021 (last trading day prior to the Ramelius Offer).
- Apollo shareholders will receive full cash consideration within:
- if selling on the ASX, two business days after the sale (T+2), with brokerage payable by an Apollo shareholder; or
- if accepting the off-market takeover offer following the opening of the offer, five business days of accepting Gold Road’s offer, with no brokerage.
- Gold Road will fund the offer with existing cash of $116 million and by drawing down on its $250 million Revolving Corporate Facility (currently undrawn).
Gold Road will be holding an investor and analyst conference call to discuss the unconditional offer at 9.00am AWST/ 12.00pm AEDT today. A live webcast of the briefing will be available at www.goldroad.com.au/webcast. Please log in 5 minutes before the call to register your details. A recording of the webcast briefing will be available on the Company’s website following the conclusion of the webcast.