The Altamin Ltd (ASX: AZI) share price has soared higher in trade on Wednesday following the company's response to a takeover offer from VBS Exchange Pty Ltd.
At the time of writing, the Altamin share price had surged to 10.5 cents apiece, a 45.83% gain on the day so far.
Yesterday, the market was informed by Thomson Geer Lawyers that it was acting on behalf of VBS in its attempted buyout of Altamin.
The bidder's statement disclosed the details of VBS' "off-market takeover bid to acquire all the fully paid ordinary shares which it does not already own in Alamin".
Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.68% lower today, dragging the S&P/ASX 200 Index (ASX: XJO) 0.07 into the red at the time of writing.
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Altamin recommends shareholders take no action
Following the announcement yesterday, Altiamin has pushed back and recommended its shareholders take no action.
The company said:
Altamin notes the announcement by VBS Exchange that it intends to acquire all of the fully paid ordinary shares in Altamin that it do[es] not already own or control via an off-market takeover for 9.5 cents per share, implying an offer value of approximately $37.2 million.
The VBS Takeover Offer is expected to open in mid-May and will remain open for at least a month, and there is therefore no urgency to take action at this time.
If you sell your Shares on-market you will not receive any increase in the VBS Takeover Offer price, and you will pay brokerage.
At the time of the release, VBS said it controlled a 19.73% stake in Altamin, making it the company's largest shareholder.
However, VBS didn't appear to have much of a shot in its attempted raid on the company, given the acquisition wasn't solicited by Altamin.
According to the Altamin statement:
As the VBS Takeover Offer was not solicited by the Company, it will need to be considered in detail by the Board of Altamin and its advisors before a formal recommendation is made to Altamin shareholders.
Shareholders should wait until they receive and consider the Target's Statement before deciding whether to accept or reject the VBS Takeover Offer.
In the meantime, VBS says it has appointed Canaccord Genuity in Australia to continue purchasing Altamin shares "on-market at the price offered under its bid until the end of the offer period".
The Altamin share price is around 4% in the red over the last year of trade, however, has shot 47% higher in 2022.
