Insights

Apollo (ASX:AOP) share price leaps 10% on takeover news

A second heavyweight has now joined the acquisition race.
The post Apollo (ASX:AOP) share price leaps 10% on takeover news appeared first on The Motley Fool Australia. –

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 share price snapshot

The Apollo 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.

The post Apollo (ASX:AOP) share price leaps 10% on takeover news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Apollo Consolidated right now?

Before you consider Apollo Consolidated, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Apollo Consolidated wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Gold Road (ASX:GOR) share price edges higher on acquisition news

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!