Tribune Resources has rejected Northern Star’s unsolicited $112.5 million offer for Tribune’s 36.75% interest in the East Kundana Joint Venture. Northern Star has also made an associated unsolicited offer for Rand Mining Ltd’s 12.25% interest in the EKJV, which has been rejected by Rand. Tribune’s board of directors has concluded that the offer significantly undervalues Tribune’s interest in the EKJV.
Tribune Resources Ltd (Tribune or the Company) (ASX code: TBR) refers to the announcement on 13th November 2018 by Northern Star Resources Limited (Northern Star) (ASX code: NST) in relation to Northern Star’s unsolicited $112.5 million offer for Tribune’s 36.75% interest in the East Kundana Joint Venture (EKJV) (Offer) and its unsolicited offer for Rand Mining Ltd’s 12.25% interest in the EKJV.
Tribune further refers to the newspaper article published in the Australian newspaper on Thursday, 27 December on the Company’s intention with respect to the Northern Star Offer and we note our response on the matter of the Offer as follows.
The Tribune Board of Directors (Board) has resolved to reject the Offer and has communicated this to Northern Star.
The Board has concluded that the Offer significantly undervalues Tribune’s interest in the EKJV.
In reaching its conclusion, the Board considered qualitative factors, such as the timing of the Offer, which the Board considers to be opportunistic in light of the Takeovers Panel’s declaration of unacceptable circumstances in relation to the affairs of the Company, and financial advice provided by its financial adviser, Argonaut.
The financial advice considered by the Board analysed Tribune’s interest in the EKJV by way of comparable company and transaction analyses (using a variety of listed gold producers and gold transactions determined by Argonaut to be comparable to the Company’s circumstances) and discounted cash flow modelling.