Australian diversified miner Independence Group is facing a hurdle to its $A312M hostile takeover offer for struggling nickel producer Panoramic Resources, with major shareholder Zeta Resources opposing its all-scrip bid.
The international resource investor, which holds 34.73% of Panoramic shares, says IGO is being opportunistic at a time when Panoramic has completed most of the difficult preparatory work at its Savannah mine.
Zeta, describing itself as a patient investor, warns fellow shareholders that accepting IGO’s all-share offer would significantly dilute their exposure to nickel.
IGO’s bid is conditional on 50.1% acceptance. It started with a 3.8% shareholding but Zeta’s opposition will make it more difficult to bridge the gap.