SYDNEY, AUSTRALIA: Provident Aurum Pte. Ltd., a subsidiary of Provident Minerals, intends to make an off-market takeover bid to acquire all shares of Sihayo Gold Limited (ASX: SIH).
The offer comes after Provident Minerals’ long-standing support for Sihayo since 2013, including equity capital participation and a US$3.9 million unsecured loan.
Currently, Provident Aurum holds a 40.41% voting power in Sihayo, making it the largest shareholder. This includes a direct holding of 31.06% in Sihayo shares, with additional interests through associates Eastern Field Developments Limited and Mr. Gavin Arnold Caudle, a director of Sihayo.
The proposed terms offer Sihayo shareholders 0.225 cents in cash for each share, a 91.3% premium over the 1-month volume-weighted average price. This final offer stands unless a competing proposal emerges, which Provident Aurum believes is unlikely.
The bid is contingent on Provident Aurum securing over 50% interest in Sihayo shares and meeting other standard conditions. This offer presents a lucrative exit opportunity for shareholders, especially considering the low trading volume of Sihayo shares, with the added benefit of avoiding transaction costs.