Innopac Holdings' proposal to acquire Australia-listed Merlin Diamonds has gained traction, as the firm has received acceptances representing 56.24 per cent of Merlin's paid-up share capital.
Having crossed the 50 per cent acceptance level, Innopac now reserves the right to declare the offer unconditional.
Innopac is offering 1.67 new Innopac shares for every one Merlin share.
Innopac first announced its decision to acquire Merlin on Jan 31, as part of its strategy to diversify its investment portfolio by entering the natural resource business.
"We are very pleased that Merlin shareholders have reacted positively to the offer, which represents an attractive value for their shares," said Innopac managing director Wong Chin Yong in a statement on Monday.
Merlin executive chairman Joseph Gutnick, urged Merlin shareholders to take up the offer, calling it a good opportunity for them to unlock the value of their shares.
"We are confident that Innopac's emergence as the sole shareholder of Merlin will be catalytic to the company's growth. The board has recommended shareholders to accept the offer."