by Greg Klein | November 18, 2013
Delighted with “such overwhelming enthusiasm,” Denison Mines TSX:DML president/CEO Ron Hochstein announced on November 18 his company has so far nabbed 100.54 million shares for 86% control of Rockgate Capital TSX:RGT. In another extension to the offer—the final one, this time—Denison now says Rockgate laggards have until November 29 to throw in their lot with the victor.
If the company can get just 4% more of Rockgate’s total shares, Denison intends to acquire the rest through a compulsory acquisition. Otherwise the aggressive uranium miner/explorer will try an “amalgamation or other corporate reorganization” to part the hold-outs from their holdings. On October 30 Denison stated it was lowering the minimum tender condition from 90% to two-thirds of outstanding shares.
At that time directors of the two companies softened their positions considerably. Rockgate president/CEO Karl Kottmeier initially denounced the Denison offer as an “unsolicited opportunistic hostile takeover bid” which scuttled Rockgate’s proposed merger with Mega Uranium TSX:MGA. Rockgate’s board did, however, reluctantly recommend shareholder acceptance.