FAR Ltd., Melbourne, rejected the all-cash off-market takeover offer made by Sydney investment group Samuel Terry Asset Management Pty Ltd. at the end of January.
The bid is for the acquisition of all the issued shares of FAR for $0.45/share (Aus.). The bid opened Feb. 14 and is due to close Mar. 14.
In its notice of offer letter to FAR, Samuel Terry said the bid is subject to a minimum acceptance of 50.1% of all FAR shares on a fully diluted basis. A number of other conditions include there is no material adverse change in relation to FAR, the S&P/ASX200 index or the Brent Crude Futures Price and no material acquisitions, disposals or new commitments in relation to FAR and its subsidiaries.
Samuel Terry currently has a 4.9% interest in FAR.
In response, the FAR board said the takeover price is substantially less than the current trading price on the ASX and that it is materially lower than the underlying value of FAR shares.
The company has appointed Baker McKenzie as legal advisors in relation to the bid.