Rex Minerals shares soar on MACH takeover bid
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The news: Small-cap Rex Minerals shares soared in morning trade after the copper-gold developer announced it has received a takeover offer by its major shareholder MACH Metals Australia, a subsidiary of Indonesia's Salim Group.
The numbers: Rex shares were up 62% to $0.45 by 11:55am AEST.
The ASX minnow has entered into a scheme implementation deed with MACH, which has proposed to acquire all of the shares in Rex which it does not already own for a cash consideration of $0.46 per share.
The offer price implies a fully diluted equity value of $393 million and represents a premium of 79% to Rex's 30-day volume-weighted average price, and 98% to the 90-day volume-weighted average price.
The MACH offer was received following a competitive global partnering process, which focused on the $854 million funding and subsequent development pathway for Rex's Hillside copper-gold project in South Australia.
The context: The Rex board unanimously recommended MACH's offer, with each board member intending to vote in favour of the takeover, though the transaction remains subject to approval from the Foreign Investment Review Board and from Rex shareholders.
Headquartered in Australia, Rex is an ASX-listed minerals exploration and development company with projects in South Australia and Nevada, USA.
MACH is a subsidiary of Salim Group, Indonesia's biggest conglomerate, with assets including the world's largest instant noodle producer Indofood, one of Indonesia's largest car manufacturers Indomobil Group, and the country's largest convenience store chain Indomaret.
What they said: Rex's CEO and managing director Richard Laufmann said the transaction "represents a more certain outcome for wider stakeholders in Hillside, including the local community, the South Australian Government and Rex employees who will benefit from the significant financial strength and proven track record of MACH to deliver the successful development of Hillside".
"Subject to approvals, we look forward to working with MACH through to completion and watching them develop the Hillside Project, Australia's largest fully permitted and shovel ready copper project," he said.
MACH managing director Ferdian Purnamasidi said: "We are excited to acquire and continue the development of the Hillside Project, which aligns with our strategy to diversify our asset portfolio."
"Our strong focus on copper is critical to the energy transition process," he said. "We remain committed to advancing the excellent work undertaken by Rex on the Yorke Peninsula, including supporting the local workforce and the broader Yorke Peninsula community through the ownership transition."
The source: ASX announcement
