Energy Fuels acquisition for Australian Strategic Materials considered fair despite share price slump
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The news: Energy Fuels’ scrip and cash acquisition of Australian Strategic Materials (ASM) is still deemed by an independent expert to be “fair and reasonable and in the best interests” of shareholders in the absence of a superior proposal despite a slump in the Nasdaq-listed suitor’s share price.
The numbers: Under the scheme, ASM shareholders will receive a scrip consideration of 0.053 new Energy Fuels shares and a cash consideration of 13 cents per share.
The implied offer price is worth $1.249 per ASM share as at 30 June, which is a 75% premium to the last close price for ASM shares on 20 January. This is less than the initial implied offer value of $1.60 per ASM share.
Energy Fuels shares were worth USD23.52 at close on 20 January but had fallen to USD11.71 at last close.
The context: The new independent expert’s report was issued in a supplementary scheme booklet that incorporates additional Energy Fuels updates, including additional acquisitions announced after entering into a scheme with ASM.
The federal court has also approved a shareholder vote on the scheme to be held on 12 August. It had previously been delayed pending the release of the supplementary scheme booklet.
The dispatch of the supplementary scheme booklet is expected to be completed on or around 31 July.
The source: ASX
