Australian uranium explorer Energia Minerals has advised its stakeholders to turn down Cauldron Energy's takeover offer citing that the offer is unfair and unreasonable.
Eariler in March 2013, Cauldron made an offer to acquire Energia by offering shareholders one of its own shares for every eight Energia shares held at a premium of 30% to the closing price on 14 March.
Energia directors, however, in a letter to shareholders stated that the offer was a clear 40% discount to the company’s share price on 22 May citing independent expert’s estimates valuing Energia’s share between $0.09 and A$0.26.
It further stated that the major shareholders and directors have decided to decline the offer implying that the accord would not be successful with the current form, according to Mining Weekly.
Cauldron through this acquisition aims to create a single uranium focused firm to hold a dominating market position in the sector.