World Titanium Resources’ (ASX:WTR) directors have unanimously recommended that shareholders reject Base Resources (ASX:BSE, AIM:BSE) unsolicited and conditional takeover offer.
They noted the non-cash offer was conditional upon a minimum of 40% of the shares on issue being offered to Base.
The directors have already received binding undertakings from shareholders representing more than 60% of its shares that they will not accept the offer in its current form.
Other reasons offered for the recommendation include:
- Bid price lower than the market price;
- The offer is now incapable of success; and
- High risk as Base has no experience of operating in Madagascar.
Under the Offer, Base is offering one fully paid ordinary share in Base for every five fully paid ordinary shares in World Titanium.
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