Astral Resources NL (ASX:AAR) Finalises Acquisition of Maximus Stake
Strategic Acquisition
Astral Resources NL (ASX: AAR) has taken significant steps towards acquiring Maximus Resources Limited (ASX: MXR) by securing a 19.99% stake in the company. This acquisition was made possible through two share sale agreements involving approximately 85.5 million Maximus shares. The transaction involves a share swap with Beacon Minerals Limited and Mr Colin Petroulas, where Astral will issue around 40.8 million shares.
In addition to the stake purchase, Astral has proposed a non-binding indicative offer of 7.0 cents per share to acquire the outstanding issued share capital of Maximus through an all-scrip, off-market takeover.
Excusive Negotiations
The board of Maximus has agreed to enter exclusive negotiations with Astral regarding the potential transaction, granting the latter until 31 January 2025 to complete due diligence and negotiate a binding transaction implementation deed. The exclusive arrangement includes customary restrictions on Maximus, ensuring that it cannot engage in discussions with other parties during this period.
Company Valuations
The proposed offer price reflects a notable premium for Maximus shareholders. It offers a 56% premium over Maximus’ closing price on 24 December 2024 and other significant premiums against various price benchmarks over the previous month and year. The deal also highlights a collaborative future, combining the resources of both companies to establish a formidable mineral resource inventory.
As part of the process, Astral Resources is working with financial advisor Taylor Collison and legal advisor Thomson Geer, while Maximus is supported by legal advisor EMK Lawyers. Continuous updates regarding the transaction will be provided as developments occur.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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