King and Wood Mallesons (KWM) is pleased to have acted for Sierra Rutile Holdings Limited (Sierra Rutile), which was recently the target of three competing takeover proposals.
On 21 July 2024, almost 4 months after PRM Services LLC (PRM) launched a hostile on-market takeover bid for SRX, SRX announced it had entered into a bid implementation agreement with Leonoil Company Limited (Leonoil). Leonoil issued a bidder’s statement in relation to its off-market takeover offer for $0.18 cash per share (Leonoil Offer) on 30 July 2024 (as well as supplementary bidder’s statements in mid-August and early September). The Leonoil Offer was significantly higher than PRM’s offer of $0.095 cash per share.
On 23 September 2024, Leonoil provided a notice to market that it had acquired a relevant interest in more than 90% of Sierra Rutile shares and was proceeding to compulsory acquisition. The Leonoil Offer closed on 2 October 2024 and Sierra Rutile has now been delisted from the ASX.
The KWM team was led by Partner, Nigel Hunt, with support from Senior Associates Angela Zhao, Brenda Valdez and Allison Warrier, Solicitors James Simpson, Rupert Williamson and Matthew Swain.
Commenting on the deal, Nigel Hunt said:
“Congratulations to Sierra Rutile on this significant transaction. After months of hard work from all involved in navigating the various Sierra Rutile takeover proposals, we have ended up with a far better outcome for Sierra Rutile shareholders which is nearly double the initial offer, and an outcome which positions the company and its ongoing stakeholders well for the future”.
