Beiträge

The indigenous owned Oil Marketing Company (OMC), Leonoil Company (SL) Limited has successfully acquired the Sierra Rutile Holdings Limited after the Board of the latter approved a US$76.4 million takeover bid.

This significant development in the Sierra Leone mining sector was announced last Sunday 21st July, 2024 through the Australia Stock Markey respectively.
Leonoil Company (SL) Limited successfully bid against other competitors, such as the United States based PRM Service LLC led by Gerald Group CEO Craig Fuad Dean, and the United Kingdom based Gem Corp.

Sierra Rutile Holdings Limited and Leonoil were pleased to announce that they have entered into a Bid Implementation Agreement (Leonoil BIA), pursuant to which Leonoil will offer to acquire all of the issued and outstanding ordinary shares in Sierra Rutile Limited that it does not already own under the terms of an off-market takeover bid, with no minimum acceptance condition.

The Leonoil bid offers a 12.5% premium to the 0.16% per share offer price made by Gemcorp Commodities Asset Holding Limited in their off-market takeover bid announced on July 1.

The Leonoil’s bid is notably not subject to any minimum acceptance condition, unlike Gemcorp's requirement of a 51% minimum acceptance condition.
Leonoil is at present a major shareholder with a 19.85% interest in the issued and outstanding shares of Sierra Rutile Limited. The bid implies a total undiluted equity value of Sierra Rutile Limited at AUS$76.5 million. To acquire the remaining shares, Leonoil is prepared to pay up to AUS$61 million.

The Board of Sierra Rutile therefore recommends that all shareholders accept the Leonoil offer consequently, they have indicated their intent to accept the Leonoil offer for all Sierra Rutile Limited shares they own or control in the absence of a superior proposal.

The approval marks a pivotal moment in Sierra Rutile's corporate history, bringing it under the stewardship of an indigenous Sierra Leonean entity, which could potentially reshape the future of the company.