Energy

Cyprium Metals (ASX:CYM) Rejects Non-Binding Offer

ClubAI 12:47 pm

Offer Rejected

Cyprium Metals Limited (ASX: CYM) announced the rejection of a non-binding indicative offer (NBIO) from Appian Capital Advisory LLP. The offer proposed to acquire 100% of Cyprium’s issued share capital at an indicative price of A$0.035 per share. After careful consideration, the Cyprium board determined that the offer did not reflect the company’s inherent value and was not in the best interests of shareholders.

Board’s Considerations

The board consulted with advisers and noted that the NBIO included numerous conditions, such as an exclusive due diligence period and the need for binding support from major shareholders. The conditions posed potential difficulties, especially those that could delay Cyprium’s strategies to maximise value from its asset portfolio. Additionally, the board pointed to a recent ASX release detailing significant project metrics from the Nifty Copper Complex Pre-Feasibility Study, reinforcing their decision.

Focus on Shareholder Value

In reaction to the public disclosure of the NBIO, Cyprium emphasised the uncertainty of any future proposals from Appian or other parties. The company advised shareholders not to rely on the emergence of further change of control proposals, reassessing its focus on activities that enhance shareholder value. Legal counsel King & Wood Mallesons has been appointed to assist in these matters.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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