(Reuters) -Australia’s Larvotto Resources said on Monday it had rejected a non-binding indicative offer received last week from United States Antimony Corporation, valuing the miner at about A$722.9 million ($469.74 million). The diversified miner said at the time, USAC’s five-day volume-weighted average price had implied an offer value of A$1.40 per Larvotto share. However, as of […]
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Australia’s Larvotto Resources rejects $373 million takeover offer on valuation concerns
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(Reuters) -Australia’s Larvotto Resources said on Monday it had rejected a non-binding indicative offer received last week from United States Antimony Corporation, valuing the miner at about A$722.9 million ($469.74 million).
The diversified miner said at the time, USAC’s five-day volume-weighted average price had implied an offer value of A$1.40 per Larvotto share. However, as of Friday, the implied offer value had fallen to A$1.11 per Larvotto share, based on USAC’s closing share price, which valued the former at A$573.3 million.
“After considering the offer in detail and taking into account the advice of our independent advisers, Larvotto’s Board of Directors unanimously formed the view that the offer materially undervalues Larvotto and has informed USAC accordingly,” the firm said in a statement.
USAC, which sells antimony, zeolite, and precious metals primarily in the U.S. and Canada, still has a 10% shareholding in the Australian firm.
The U.S.-based firm did not immediately respond to a Reuters request for comment.
($1 = 1.5389 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Nia Williams)