Tribune Resources Ltd. and Rand Mining Ltd. have rejected Northern Star Resources Ltd.'s A$150 million offer for their collective 49% interest in the East Kundana gold joint venture in Western Australia.
Tribune and Rand Mining said Dec. 31 that the offer significantly undervalues their interest in East Kundana while the timing of the bid was opportunistic as it came shortly after the Australian Takeovers Panel ordered an overhaul of the companies' ownership arrangements and disclosures following an application from a shareholder seeking a restraining order against three of Tribune's largest shareholders.
Northern Star said the same day it believes that the offer is fair considering, among other factors, admissions by controlling shareholders in Tribune and Rand Mining of breaches of the Corporations Act and ASX listing rules.
Northern Star, which is a shareholder in both the companies, had offered to acquire the 36.75% interest held by Tribune for A$112.5 million and the 12.25% interest of Rand Mining for A$37.5 million.
In its latest statement, the spurned buyer said, "Neither the Tribune and Rand Boards nor their appointed financial adviser have formally engaged with Northern Star in response to the offers, and the proposed transactions have not been put to the Tribune or Rand shareholders for consideration."