The Apollo Consolidated Ltd (ASX: AOP) share price has rocketed into the green today, currently trading more than 10% higher at 58.5 cents apiece.
That's an all-time high for the West Australian gold and minerals explorer, which has been under the spotlight lately as competition surfaces between two ASX gold rivals to acquire the company.
Read on for more details.
What did Apollo announce today?
Apollo advised it had received an unconditional, off-market takeover bid from Gold Road Resources Ltd (ASX: GOR) to acquire all of the outstanding Apollo shares it does not already own.
The Gold Road proposal comes just a few days after another ASX gold share, Ramelius Resources Ltd (ASX: RMS), made an offer to acquire the company.
Ramelius has put forward a conditional, cash and scrip deal that implies a share price value of 55.4 cents for Apollo.
Meanwhile, Gold Road is offering an all-cash consideration of 56 cents per share – a 2.5% discount to Apollo's current share price.
Importantly, Gold Road's bid values Apollo at $166 million on a fully diluted basis, whereas Ramelius' offer sets a valuation of $163 million.
What's next for Apollo?
After receiving the first offer, Apollo's board unanimously recommended its shareholders vote in favour of the Ramelius proposal.
In response to Gold Road's proposal today, the board has recommended its shareholders take no immediate action. This will enable Apollo to analyse both offers over the next month and decide which fits best for the company.
Apollo stated in today's release:
Apollo reiterates that shareholders should TAKE NO ACTION in respect of the Gold Road offer until they have had the opportunity to fully consider both Apollo's target's statement and the bidder's statement.
As the Gold Road offer must remain open for at least one calendar month from its commencement, Apollo shareholders will have ample time to make a decision after they have received the target's statement.
Apollo Consolidated share price snapshot
The Apollo Consolidated share price has boasted an outsized return this year, gaining 89% since January 1.
This extends its return over the last year to 56%, well ahead of the S&P/ASX 200 index (ASX: XJO)'s gain of around 19% in that time.
