Shenghe moves to acquire Peak Rare Earths in A$158m deal
ASX-listed Peak Rare Earths on Wednesday announced a binding scheme implementation deed with Ganzhou Chenguang Rare Earths New Material, a wholly-owned subsidiary of Chinese rare earths major Shenghe Resources, under which Chenguang proposes to acquire 100% of the Tanzania-focused company. The proposed acquisition includes a cash consideration of A$150.5-million, plus an amount equal to the proceeds raised from a non-renounceable entitlement offer of up to about A$7.5-million. This implies a total transaction value of A$158-million and a cash payment of about A$0.359 a Peak share, representing a near 200% premium to Peak’s closing price of A$0.12 a share on May 9, and a 160% premium to the 20-day volume-weighted average share price of A$0.138.
ASX-listed Peak Rare Earths on Wednesday announced a binding scheme implementation deed with Ganzhou Chenguang Rare Earths New Material, a wholly-owned subsidiary of Chinese rare earths major Shenghe Resources, under which Chenguang proposes to acquire 100% of the Tanzania-focused company.
The proposed acquisition includes a cash consideration of A$150.5-million, plus an amount equal to the proceeds raised from a non-renounceable entitlement offer of up to about A$7.5-million. This implies a total transaction value of A$158-million and a cash payment of about A$0.359 a Peak share, representing a near 200% premium to Peak’s closing price of A$0.12 a share on May 9, and a 160% premium to the 20-day volume-weighted average share price of A$0.138.
