Royalco Resources Ltd. said Dec. 12 that an independent board committee recommended that shareholders accept Fitzroy River Corp. Ltd.'s proposed off-market takeover of shares it does not own.
The committee, which includes David Croll — the only Royalco director who is not also a director of Fitzroy River — said the offer of 24 Australian cents per share was fair and reasonable in the absence of a superior proposal, citing the conclusions of a review by BDO Corporate Finance, an independent expert.
The deal values Royalco at about A$12.7 million.
Fitzroy River will begin the compulsory acquisition of Royalco shares upon reaching a relevant interest threshold of at least 90%.
The offer expires Jan. 13, 2020.
Fitzroy River made an unsuccessful bid to acquire Royalco in early 2017.