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Phoenix Gold (ASX:PXG) confirmed the receipt of an unsolicited takeover offer from Hong Kong Stock Exchange-listed Zijin Mining group. Phoenix has noted that the bid is “highly conditional” and has advised its shareholders to take no action.

Phoenix Gold (ASX:PXG) confirmed the receipt of an unsolicited takeover offer from Hong Kong Stock Exchange-listed Zijin Mining group. Phoenix has noted that the bid is “highly conditional” and has advised its shareholders to take no action.

As quoted in the press release:

Phoenix confirms that after market close on Friday, 19 June 2015 it received an unsolicited approach from Zijin.

In approaching Phoenix with its Proposed Offer, Zijin sought an endorsement from the Phoenix Board that the Proposed Offer should be recommended for acceptance by all shareholders as well as deal protections such as no-shop, no-talk, no due diligence and a break fee.

Phoenix engaged in discussions with Zijin and its advisors over the course of the weekend, including facilitating the satisfaction of some of Zijin’s conditions, in an effort to secure a transaction that is in the best interests of Phoenix shareholders. At the conclusion of these discussions, and despite the accommodation given by Phoenix, Zijin was unwilling to improve the price under its Proposed Offer and, as a result, the Phoenix Board formed the considered view that it could not recommend the Proposed Offer in its current form. In particular, the Phoenix Board determined that it was inappropriate, on the basis of Zijin’s current Proposed Offer, to limit its ability to solicit and facilitate a superior proposal that could deliver greater value to Phoenix shareholders.

Phoenix will continue to consider means to maximise value for the Company’s shareholders including actively soliciting alternative proposals.

Click here to read the Phoenix Gold (ASX:PXG) press release

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