Visby management presents superior offer for LCL resources
- Visby Management offered to purchase Los Cerros Limited's Colombian assets, presenting a binding offer to shareholders.
- LCL's board rejected Visby's superior proposal in favor of a contingent option from Tiger Gold, which shareholders initially denied.
- Given the circumstances, Visby urged LCL shareholders to reject TGC's offer and consider its guaranteed purchase arrangement.
In New York City on May 19, 2025, Visby Management LLC made a binding offer to acquisition target Los Cerros Limited (ASX:LCL) regarding its mining assets in Colombia. This resulted from a series of negotiations and shareholder meetings that revealed a split between Visby and LCL's board, primarily over a competing offer from Tiger Gold Corporation (TGC). LCL shareholders rejected TGC's initial offer on February 17, 2025, prompting Visby's engagement with its board, where they proposed a more advantageous buyout that guaranteed full consideration without contingent events. However, LCL's board refused to negotiate with Visby and stuck with TGC, even after the latter's offer was deemed less favorable due to the nature of cash payments and the risk of an option rather than a guaranteed sale. A new proposal surfaced from TGC on May 7, 2025, which only partly improved their offer but still kept the deal contingent, benefiting only a select few at the top of LCL's management. Amid these developments, Visby maintained its stance urging LCL shareholders to vote against the TGC offer, highlighting its willingness to pursue a straightforward sale, proving they had the funds necessary to close quickly upon approval. Ultimately, this conflict over asset acquisition exposes the tensions between shareholder interests and management decisions, with Visby pushing for more transparency and better opportunities for LCL’s shareholders.