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Auzex Resources Ltd (ASX:AZX) Takeover Offer from GGG Resources Plc

Takeover Offer from GGG Resources Plc
 
Auzex Resources Ltd (“Auzex” or the “Company”) advises that a copy of the Bidder's Statement in relation to a conditional off-market takeover offer for Auzex from UK-based GGG Resources Plc (“GGG”) was released to the ASX earlier today.
 
The offer consideration is seven (7) GGG shares for every five (5) Auzex shares (“Proposed Offer”). The Company notes that the Proposed Offer values Auzex at approximately A$0.87 per Auzex share (total equity value of circa A$94.9 million), which the Board considers grossly inadequate and opportunistic and potentially places the near-term development of Bullabulling at serious risk. GGG have no technical or operational resources working on the day to day development of Bullabulling.
 
GGG's offer does not comprise any cash and Auzex Shareholders should be concerned with the potential for continued GGG share price weakness. Since GGG announced its interest in Auzex on 14 March 2011, its share price has fallen by over 20%1, and the Proposed Offer has fallen significantly in value to approximately A$0.67 per Auzex share (total equity value of circa A$64 million), based on the closing price for GGG on Friday 15th April 2011.
 
The Auzex Board will provide a formal response to GGG's offer in its Target's Statement, which is expected to be released in May 2011.
 
In the meantime, Auzex shareholders are advised to take no action in relation to the GGG Proposed Offer or in response to any communications from GGG and to wait for Auzex's Target's Statement. 
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