Independence dismisses share slide

Independence Group managing director Peter Bradford says shareholder reaction to the company’s $1.8 billion offer for Sirius Resources has been positive, despite the company’s share price slide since the friendly tie-up was announced earlier this week.

Mr Bradford and Sirius boss Mark Bennett returned to Perth last night from investor roadshow meetings on the East Coast, and both said shareholder reaction to the deal had been positive.

Independence Group shares have slid 20 per cent after the deal was announced on Monday, and were trading down 12 cents, or 2.48 per cent, at $4.72 at 12.20pm.

Mr Bradford told reporters he believed the sell-off had been overdone in the wake of the announcement, and the company did not believe its cash and scrip offer for Sirius was too high.

“Most people recognise that, although this deal is dilutive on a cash flow and earnings basis for Independence for the next year and a half or so, it’s significantly cash accretive after 2017,” he said.

“Given the general feedback from investors on both sides it seems to me the selling has been a little bit overdone, so it potentially creates a buying opportunity for management.”