Zeta Resources, the majority shareholder of Australia’s Panoramic Resources, is considering rejecting the recent A$312m ($215.75m) off-market takeover bid from Independence Group (IGO) for the Panoramic Resources.

The move comes as Zeta Resources considers the IGO’s offer to be unsolicited and opportunistic.

As a result, Zeta said in a statement: “Zeta Resources does not intend to accept Independence Group’s current offer.”

As per the takeover offer made recently, IGO said that it will exchange each of its shares for every 13 shares of Panoramic Resources. The all-stock deal implies a value of 47.6 cents for each of Panoramic Resources’ shares.

Zeta said that IGO launched its takeover offer at the time when proper value for the full mining ramp up has not been achieved at the Savannah nickel-copper-cobalt mine in the Kimberley region of Western Australia.

Zeta noted: “The capital funds needed to complete the ramp up have only just been invested in Panoramic.

“IGO is being opportunistic by launching an all-share offer for Panoramic at a time when Panoramic has completed most of the difficult preparatory work before reaching the Savannah North ore.”

Panoramic’s exposure to nickel could be significantly reduced

Panoramic Resources is the 100% owner of the producing Savannah nickel sulphide mine and processing plant as well as two platinum group metals projects – Panton Project in Western Australia and the Thunder Bay North Project in Ontario, Canada.

Earlier, IGO said that the offer forms part of its strategy to focus on metals that are critical to clean energy, which includes nickel and copper.

Zeta believes the Panoramic, if it became part of a combined entity with Independence Group, would significantly reduce its exposure to nickel.

The firm added: “Finally, Zeta Resources would note that Independence Group’s offer for Panoramic is highly conditional, including obligations on Panoramic to commission due diligence on behalf of Independence Group.”