Alita Resources (SGX:40F) has issued a warning to its shareholders after it received an unsolicited off-market offer for 15.24% of its shares from Clearwater Recovery Partners, according to a Thursday filing with the Singapore Exchange.
Clearwater, which specializes in distressed asset investment, has offered to buy up to 225 million shares in the company at AU$0.0025 per share.
Alita Resources' board believes the offer undervalues the company, with the per-share offer less than the implied per-share value.
Additionally, Clearwater has not conducted an independent legal analysis of the contractual arrangements, and Alita's board has therefore not endorsed or recommended the offer.