Mineral exploration company, Highlands Pacific Limited (ASX: HIG) on 30 April 2019 announced at the shareholders meeting that shareholders of the company have approved the scheme of arrangement (Scheme) where Cobalt 27 Capital Corp will be acquiring all the issued share capital of the company that it does not already own. Around 86.91% of the shareholders voted in favour of the resolution. However, by 30 April 2019, the scheme was subjected to the court’s approval for it to get implemented. For the approval of the Scheme of arrangement, the company had applied to the National Court of Papua New Guinea, Port Moresby, Papua New Guinea (Court) and the hearing was scheduled on 2 May 2019.
On 2 May 2019, the court approved the scheme of arrangement between Highlands and Highlands shareholders who were not associated with Cobalt 27 Capital Corp as per section 250(1) of the Companies Act 1997 (PNG). Once the scheme gets implemented, all the issued share capital of Highlands that is not owned by Highlands Pacific Limited will be acquired by Cobalt 27. The company expected that it would file a certified copy of the Court Orders with the Papua New Guinea Registrar of Companies on Friday, 3 May 2019. At that point, it would become legally effective. Also, post that the company stated that it would apply for its shares to be suspended from trading on ASX as well as Port Moresby Stock Exchange (POMSoX) after the trading on 3 May 2019.
The shareholders of Highlands Pacific Limited would receive the scheme consideration amount of A$0.105 per share of HIG held at 7.00pm (Sydney Time) on the Record Date. The company expects the Record date to be Friday 10 May 2019.
Further, on 3 May 2019, the company filed a certified copy of the Court Orders with the Papua New Guinea Registrar of Companies. Thus, now with the scheme becoming legally effective, the shares of HIG are put on suspended mode on ASX.
The shareholders of Highlands Pacific Limited will receive the Scheme consideration on the Implementation Date which is expected to be on 17 May 2019. Shareholders other than those with PNG registered addresses will be receiving the Scheme consideration in AUD either through cheque or by electronic funds transfer into an Australian dollar denominated bank account. Those shareholders with PNG registered addresses will be paid the PNG Kina equivalent of the Scheme consideration through cheque or through electronic funds transfer into a PNG Kina denominated bank account.
In the previous six months, the shares of HIG generated a return of 5%. By the end of the trading session on 3 May 2019, the closing price of the shares of HIG was A$0.105. Highlands Pacific Limited holds a market capitalization of A$114.74 million and approximately 1.09 billion outstanding shares. The company’s PE ratio stands at 3.440x, while the EPS is at $0.031.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.