Adriatic Metals shares gain on Dundee Precious Metals’ $2b takeover bid
Make us a preferred source
Make us a preferred source on Google
The news: London and Australian stock exchange-listed Adriatic Metals’ share price was up in afternoon trading following a Friday evening announcement that Toronto-listed miner Dundee Precious Metals (DPM) plans to acquire it for USD1.25 billion.
The numbers: Adriatic’s share price on the ASX had gained 8.4% to $5.42 at 2:44pm AEST.
Its share price on the London Stock Exchange (LSE) gained 9.2% following the acquisition announcement, closing at £2.63 on Friday.
Adriatic shares on the ASX will be purchased for $5.56 each, a 47.8% premium on the last close price prior to the commencement of the offer period on 20 May. LSE shares will be purchased at £2.68 each, a 50.5% premium on the last close price ahead of the offer period.
The share price for Adriatic previously spiked in mid-May after early-stage negotiations were confirmed by Adriatic at the start of the offer period.
The context: The deal will be paid through a mix-and-match facility, comprising roughly one third cash and two thirds new DPM shares, allowing existing shareholders to elect whichever they prefer.
Under this facility, the aggregate amount of cash to be paid will be £321 million and 54.9 million new DPM shares will be issued. DPM shares will take the 11 June closing price value of CA$20.33.
Adriatic’s directors, advised by RBC Capital Markets, intend to recommend to shareholders that they vote in favour of the deal. The deal will be undertaken through a UK scheme of arrangement, which is expected to become effective in the fourth quarter of 2025.
What they said: DPM chief executive David Rae said that adding Adriatic’s silver operation in Vareš, Bosnia and Herzegovina to the company’s asset portfolio "creates a premier mining business with a peer-leading growth profile, high-quality development and exploration pipeline and a robust platform to deliver above-average returns”.
Adriatic chief executive Laura Tyler said “the combined group will be well placed to pursue additional value-additive opportunities”.
“We see clear synergies between the asset portfolios of DPM and Adriatic, supported by DPM’s strong financial capacity and proven operational expertise," Tyler said.
The source: ASX
