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It follows an announcement yesterday by Wah Nam that it intends to waive the 90% minimum acceptance condition for its off-market $A267 million bid for FerrAus, if it receives acceptances of more than 50% from shareholders.
In a statement, FerrAus said the move aligns the offer with that of Wah Nam’s Brockman Resources bid, which also has a 50% minimum acceptance condition, and introduces less restrictive conditions, in part addressing one of the board’s concerns.
“The board may reconsider its recommendation in relation to the offer for FerrAus should circumstances change,” FerrAus said in a statement.
“In particular, the level of acceptances for the Brockman offer is one of the important factors, as the board considers there to be merit in combining the assets of FerrAus and Brockman.”
As of February 21, Wah Nam held a 16.59% stake in FerrAus, with the offer due to close on May 16.
It remains confident it will achieve the 50% minimum acceptance threshold for its all-scrip bid for Brockman, which is developing the Marillana project at an estimated capital cost of $1.9 billion.
At the end of last month Wah Nam held a 41.7% stake in Brockman.
Shares in FerrAus were up 3.25% or 2.5c in morning trade to 79.5c.
