Goldfields Money Ltd. responded to Firstmac Holdings' confirmation that it will not extend its takeover offer beyond Dec. 1.
Goldfields Money maintained that shareholders should reject Firstmac Holdings' offer and take no action given that the offer of A$1.27 per share is below the company's value.
Goldfields Money said the proposed transaction with Finsure Holding Pty. Ltd. is a superior proposal.
Firstmac Holdings had first made an offer of A$1.12 on Oct. 16 and subsequently increased the offer price to A$1.27. Goldfields Money said the offer is inadequate since the company's shares have traded above the offer price. The company said the volume weighted average price of Goldfields Money shares was A$1.41 on Nov. 27, or 11% higher than Firstmac Holdings' offer.
Goldfields Money had announced a transaction with Finsure. Goldfields Money shares are to be issued to acquire Finsure at a deemed issue price of A$1.50 per share.
