Takeover tensions rise as EAR shareholders insist on receiving a better offer from Bill Beament’s Northern Star Resources Ltd (ASX: NST).
On August 2019, NST announced that they entered into a Bid Implementation Agreement (BIA) to acquire the shares of Echo Resources Ltd (ASX: EAR). Since then, Echo Shareholders have become uneasy and undecided whether to accept NST’s 33¢ per share offer or to wait it out until the bid increases.
Shareholders urge Beament to increase takeover offer
Echo Shareholders call for a revaluation of the takeover offer, hoping for the figures to go even higher.
According to market observers, Bill Beament will not pay more and does not pay fair, but shareholders are still hopeful that Beament’s Perth-based gold miner will increase the meagre offer. The bid is a mockery with Beament and his team offering a paltry amount to Echo Shareholders.
Clever shareholders wait it out
Experts advise Echo Shareholders to not accept the offer unless they are in desperate need of cash, minimising the growing amount of stake held by NST and forcing Bill Beament’s camp to increase their offer.
The key is for Echo Shareholders to sit on hands and wait until Bill Beament’s NST increases their offer. It is best to hold out since the offer has already been made unconditional and can be accepted at any time until the end of the Offer Period.
Echo shareholders are disappointed with the insipid amount that Bill Beament, NST’s opportunistic Executive Chairman, can offer in place of acquiring shares from Echo and having full access to their valuable assets. The acquisition of Echo Resources will allow NST to process gold at the Bronzewing processing plant.
Holders should wait for NST to announce the takeover bid to be ‘best and final’ if Beament’s NST is not going to raise the offer.
Northern Star’s 33¢ offer is ‘highway robbery’ and small punters are being sold a pup by Bill Beament, Echo Resources, and their board of directors. If only Beament’s gold miner raises their offer, everyone will walk away satisfied at 40¢ or above.