Kingsgate Directors REJECT Northern Gulf Petroleum Takeover Offer
The Directors of Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate” or the “Company”) have today unanimously advised shareholders to REJECT the opportunistic and inadequate proportional takeover offer by Singapore-based Northern Gulf Petroleum International Pte. Ltd. (“NGPI”) of 4.2 cents per Kingsgate share.
In the Target’s Statement released to Kingsgate shareholders today, the Directors advise that Grant Thornton Corporate Finance, acting as an Independent Expert, has concluded that the offer is NOT FAIR and NOT REASONABLE. This conclusion supports the view held by the Kingsgate Board that the NGPI offer significantly undervalues the Company.
The offer is materially lower than the Independent Expert’s value range of 27.9 to 42.0 cents per share. It also fails to recognise Kingsgate’s improved prospects and financial position; is highly opportunistic in its structure and timing; and ignores the strong potential of Kingsgate’s flagship asset, the Nueva Esperanza Gold/Silver Project in Chile.
The Bidder’s Statement is unclear and uncertain regarding the future operation and growth of Kingsgate should NGPI gain control.