The Conversation (0)
Augusta Resource Corporation (TSX:AZC, NYSEMKT:AZC) has responded to the announcement made last Friday by HudBay Minerals Inc. that it has extended its offer to acquire common shares of Augusta and has waived the minimum tender condition under the offer.
Augusta Resource Corporation (TSX:AZC, NYSEMKT:AZC) has responded to the announcement made last Friday by HudBay Minerals Inc. that it has extended its offer to acquire common shares of Augusta and has waived the minimum tender condition under the offer.
According to the company:
HudBay’s unprecedented coercive tactic of dropping its minimum tender condition part way through its initial bid period is an ill-considered reaction to an obviously failing offer:
- The HudBay offer has received virtually no support from Augusta’s shareholders (at less than one half of one percent of Augusta’s common shares tendered), or from the analysts who cover Augusta;
- Augusta’s share price has consistently traded at a significant premium to the implied offer price since the announcement of the HudBay offer, with the premium currently over 27%; and
- The early extension of the offer and waiver of the minimum tender condition by HudBay are a clear acknowledgment that its offer was not going to succeed.
Richard Warke, Augusta’s Executive Chairman, stated:
HudBay started this process with a low ball bid, which the market clearly has rejected. Now, when their bid is failing, HudBay drops their minimum tender condition in a desperate attempt to give life support to their bid. Their tactics are just appalling. Our Board understands its fiduciary obligation to protect the interests of our shareholders, and we intend to do just that.
Click here to view the full press release.