By Thomas Dixon
Sierra Rutile Board has approved the 76.4M Australian Dollar take over by an indigenous Sierra Leonean Company, Leone Oil Company Limited, this announcement was made in the Australian Stock Market this past Sunday 21 July.
This shows that Leone Oil outbids a United Kingdom Company Gemcorp and an US Company PRM Service LLC owned by Gerald Group CEO Craig Fuad Dean
Sierra Rutile and Leone Oil Company Ltd announced that they have entered into a Bid Implementation Agreement (BIA) pursuant to which Leone Oil will offer to acquire all of the issued and outstanding shares in Sierra Rutile that it does not already owned under the terms of an offer market takeover bid with no minimum of acceptance condition.
That the offer consideration represents a 12.5% Premium to the 0.16% a share offer price by Gemcorp Commodities Asset Holding Limited off market takeover bid announced on 1 July, pointing out that Leone Oil offer does not subject to any minimum acceptance condition, compared to Gemcorp’s 51% Minimum acceptance condition.
That Leone Oil is a major shareholder with a relevant interest of 19.85% in the issued and outstanding shares in Rutile as at the time of the announcement.
That Leone Oil offer implies a total undiluted equity value of Sierra Rutile of A$76.5M, noting that, in order to acquire the Sierra Rutile Shares it does not already own, up to 61 Million Australian Dollar will be payable by Leone Oil.
The Board of Sierra Rutile recommends that each holder of Rutile Shares accept the Leone Oil Offer and have indicated that they will accept the Leone Oil Offer in respect to all Sierra Rutile Shares they own or control in both instances in the absent of a superior proposal.
