(Updates to add Forrestania's statement in the fourth and fifth paragraphs and stock movements in the last paragraph)
Zenith Minerals (ASX:ZNC) said Ida Metal Investments has increased its stake in the company to around 10.1% after acquiring 4 million shares on-market, while indicating it does not currently intend to accept Forrestania Resources' (ASX:FRS) takeover offer of one Forrestania share for every 4.3 Zenith shares, according to a Thursday filing with the Australian bourse.
The company noted that Ida's holding alone would not prevent the takeover offer from becoming unconditional, with the bid subject to a 50.1% minimum acceptance condition, the filing said.
The company's board reiterated its unanimous recommendation that shareholders accept Forrestania's offer, in the absence of a superior proposal, the filing added.
Forrestania Resources, in a Thursday filing with the Australian bourse, said it considers that it is in the best interests of Zenith Shareholders to accept its offer as no superior offer has materialized yet.
Forrestania added that Zenith's current share price is "arguably being supported" by its takeover offer and Ida's current shareholding does not prevent Forrestania from achieving the minimum acceptance condition.
Zenith Minerals' shares jumped 5% in recent Thursday trade, and Forrestania Resources' shares also gained 5%.