Royalco Resources Ltd. shareholder High Peak Royalties Ltd. said Jan. 31 that it has no intention of accepting Fitzroy River Corp. Ltd.'s A$10.5 million takeover offer.
High Peak, which owns 21.36% of ASX-listed Royalco, is one of the parties attempting to spill the company's board.
Fitzroy recently declared its off-market bid unconditional and has so far obtained a 43.265% stake in Royalco.
High Peak's motivation for seeking a board spill is that it wants to see a greater return to shareholders in the form of dividends.
The shareholder has put forward three nominations for replacement directors, while another shareholder, Noontide Investments Ltd., which holds an 18.6% stake in Royalco, has also put forward a nomination.
High Peak disputed allegations by Royalco and Fitzroy River that the investor plans to take control of Royalco and delist the company, which is what Fitzroy River plans to do if the takeover goes ahead.
"[High Peak's] motivation is to take action that will free the cash flow from unnecessary overheads such as office rental and the managing director's remuneration so that a greater pool of funds are available for distribution as dividends to all shareholders," the company said.
A meeting to vote on the appointment of new directors is scheduled for Feb. 22.