Wah Nam extends Brockman offer Published 3:49 PM, 23 Apr 2012 Last update 3:49 PM, 23 Apr 2012
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By a staff reporter
Wah Nam Australia International Ltd has extended its offer for Brockman Resources Ltd's remaining shares, urging its takeover target's shareholders to accept the deal.
Investors responded well to the news sending shares in Brockman 9.8 per cent higher to $2.24, against a benchmark index fall of 0.32 per cent.
In a strongly-worrded update to the market, Wah Nam, which currently owns over 80 per cent of Brockman, encouraged investors to accept its offer by 1600 WST on May 31.
Wah Nam's offer to shareholders is $1.50 plus 18 Wah Nam International shares for each Brockman share.
It warned investors that they faced decreased liquidity in Brockman shares and increased difficulty in selling them if they did not take up the offer.
Wah Nam also said that Brockman faced being delisted from the Austalian Securities Exchange (ASX) if it had less than the required spread of shareholders under the ASX listing rules.
It said that it may compulsorily acquire any remaining shares in Brockman should it reach 90 per cent ownership of the company.
"Wah Nam Australia believes your acceptance of the unconditional offer will enable you to realise value through the cash component of the Offer Consideration, while retaining the opportunity to participate in the future of the Marillana project through the through the scrip component of the Offer Consideration," the company said.
BRM Price at posting:
$2.25 Sentiment: ST Buy Disclosure: Held
