Goldfields Money has urged its shareholders to take no action on increased takeover bid from its biggest shareholder.

Non-bank lender Firstmac upped its bid for the West Australian bank from $1.12 to $1.27, at a 27 per cent premium to Goldfields (ASX:GMY) closing price of $1 the day before the initial offer was made.

But Goldfields believes there is potential to get more bang for their buck.

“The board is continuing to progress discussions with several counter-parties with a view to there potentially being an alternative superior proposal to the increased Firstmac offer,” the bank told investors.

Ernst and Young previously valued GMY shares at $1.27 to $1.39 and Goldfields say there is no rush to take the bottom end of the range.

Goldfields Money's share price over the past year. Source:
Goldfields Money’s share price over the past year. Source:

Goldfields shares were up 7 per cent to $1.30 in early Friday trade, valuing the company at $27 million.

The offer is open until December 1, but Goldfields has advised shareholders to take no action.

The offer comes as the bank attempts a rebrand, moving from conventional to digital banking.

A resolution to change its name to Bare Money was rejected at the company’s AGM, and outgoing director James Austin was replaced by chief executive Simon Lyons.

Established as a local bank in Kalgoorlie, Goldfields is the only WA-based authorised deposit-taking institution and says it is pursuing its vision to become a digital bank.