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Rocklands directors still against Bowen bid

A SECOND rejection recommendation has been sent to shareholders of takeover target Rocklands Rich...

Staff Reporter
Rocklands directors still against Bowen bid

Late last month Rocklands Richfield directors advised its shareholders to vote against the initial offer from Bowen Energy claiming Bowen's cash position may be insufficient to fund future operations.

Instead, the directors encouraged shareholders to vote in favour of a reverse takeover bid from China Coke and Chemicals saying the alternate offer was "a credible alternative investment to the Bowen offer", which would generate income well before the commercialisation of its coal tenements.

The second rejection notice comes after Bowen Energy, with advice and support of associated company Bhushan Steel, upped their takeover offer to 40c cash and one Bowen share for every two Rocklands shares.

Voting on the CCC bid - set for September 18 - was delayed until September 26 to give shareholders a chance to consider the reviewed Bowen offer.

The recent advise to reject the Bowen bid explains "the release of this Second Supplementary Target's Statement does not affect the unanimous decision of your directors that you reject the Bowen offer" for the same reasons spelled out in the initial rejection advice.

The Bowen offer was extended until October 12.

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