Far East Gold's (ASX:FEG) independent board committee lodged a supplementary target statement reiterating its view that a takeover offer from Xingye Gold (Hong Kong) Mining is neither fair nor reasonable, according to a Wednesday filing with the Australian bourse.
Xingye has proposed to acquire Far East Gold for AU$0.13 per share in cash, with the consideration potentially increasing to AU$0.15 if Xingye obtains an interest of more than 50% in the company on a fully diluted basis by July 21.
The independent committee believes the offer is opportunistic and materially undervalues Far East Gold at both consideration levels. It continues to recommend that Far East shareholders reject the proposal, per the filing.