Australia's Sierra Rutile soars on takeover bid from Gemcorp

Sierra Rutile Holdings

01/07/2024 01:43

** Shares of Sierra Rutile  SRX.AX  soar as much as 17% to
A$0.155, their highest since Jan 5
    **  The natural rutile producer says it has entered a
binding agreement with The Gemcorp Group, under which Gemcorp
will buy all shares in co that it does not already own 
    ** Offer implies undiluted equity value of A$67.9 million 
($45.30 million)
    ** Offer value of A$0.095 is at 68.4% premium to PRM
Services' on-market takeover bid on March 20; and at a 105.1%
premium to SRX's last closing price
    ** Co says board of directors have unanimously recommended
to accept Gemcorp's proposal 
    ** Shares set for best day since March 20, if gains hold 
    ** Stock has risen ~38% this year as of last close

($1 = 1.4988 Australian dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))