Kingsgate Consolidated Limited (ASX:KCN) has announced its Directors have unanimously advised shareholders to reject the takeover bid put forward by Singapore-based Northern Gulf Petroleum International.
The energy company announced in September that it was looking to acquire 50.1 percent of Kingsgate at 4.2 cents cash per share.
Kingsgate has indicated an independent expert has concluded the offer is not fair or reasonable, with the offer price materially below the valuation range for the company of between 27.9 and 42 cents per share.
Kingsgate shares have been in a voluntary suspension since May, and recommenced trading today, dropping sharply on reinstatement.
Kingsgate Consolidated posted a net loss of $229.5 million at 30 June 2016.