Many shareholders consider the offer too low.
The company should not be desperate to sell due to the large cash reserve.
Development is unlikely to proceed without a takeover by someone.
The offer is considerably less than the previous takeover for Apollo ( approx $33oz vs $116oz ).
The directors need to provide their justifications why this offer price is reasonable.
Strategic considerations for a target
The directors of an Australian company (or responsible entity of an Australian trust) will, given their fiduciary duties, usually seek to maximise shareholder value and, to that end, will usually consider the reasonableness of any takeover proposal.
The overriding principles are that: (i) the directors of an ASX-listed Australian company (and responsible entity of a trust) must at all times act bona fide in the interests of the company (or trust unitholders), and for a proper purpose; and (ii) in respect of a takeover bid, target directors should not take actions, without securityholder approval, which causes the defeat of a control proposal.
