Pilbara Minerals (ASX:PLS) has been provided a go-ahead by the creditors of Altura Mining Limited (ASX:AJM) to proceed with the strongly anticipated share sale agreement, an ASX announcement informed on 14 December 2021.
The news of a possible deal between the two firms first came in late October after Altura’s long-standing fund issues sent it to receivership, letting its Pilangoora lithium project to be acquired.
Post this, Pilbara Minerals came up with an offer to buy Altura’s parent company for A$237 million.
Under the receivership duties, now Altura’s creditors have ratified and signed the deed of company arrangement. Finalisation under the share sale agreement is conditional on completion of a A$240 million equity raising in support of the transaction.
PLS announced on 28 October 2020 that it is financing the upfront cash consideration of US$155 million and associated transaction costs through the proceeds of the A$240 million equity raising.
During the same meeting, both the companies agreed to start the equity raising process. This involves a $119 placement to AustralianSuper Pty Ltd, a pension fund giant, which will be supported by a $121 million entitlement offer at 36 cents per share.
With the deal is under process, the AustralianSuper placement is scheduled to open in the current week, which will soon be followed by the offer.
Also, as part of the deal, PLS shall be paying a further $6 million to fund dividends and employees’ requirements.
Meanwhile, the PLS stock was found trading at $0.875 per share with market capitalisation of $1.94 billion at 02:08 PM AEDT.