Energy Fuels all-scrip acquisition of Australian Strategic Materials faces further delay
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The news: The all-scrip acquisition of Australian Strategic Materials by Energy Fuels faces a further delay, after the Nasdaq-listed suitor separately announced an agreement to acquire German magnet maker Vacuumschmelze for USD1.9 billion ($2.75 billion) in cash and stock.
The context: Energy Fuels announced it would acquire all shares in ASM it did not own for 0.53 Energy Fuels shares per ASM share in addition to an unfranked special dividend of 13 cents per share in January. At the time, the implied equity value of ASM was about $447 million.
ASM told the market on 19 June that a shareholder meeting to vote on the transaction, scheduled for 22 June, had been postponed to allow time for supplementary disclosure to be made to securityholders. The disclosure related to a conditional USD725 million financing commitment Energy Fuels had received from the US Office of Strategic Capital.
On Wednesday, ASM reiterated that the final postponement date will also need to accommodate the additional announcement relating to the Vacuumschmelze transaction. However, a revised timetable has not yet been provided.
On 15 June, ASM released an updated independent expert’s report from BDO that maintained the all-scrip deal remains fair value as at 12 June, despite a decline in Energy Fuels’ share price.
The ASM board continues to unanimously recommend shareholders vote in favour of the deal. Energy Fuels will list on the ASX following the transaction.
The sources: ASX, ASX, ASX, Energy Fuels media release
