12th Mar 2018 10:57
LONDON (Alliance News) - Shares in Stellar Diamonds PLC soared on Monday as the company said it has agreed final terms on the offer for the company by Newfield Resources Ltd.
Each Stellar shareholder is to receive 0.7622 Newfield shares per Stellar share under the deal, which will see Newfield acquire the entire issued share capital of Stellar.
Newfield said the deal values Stellar at approximately GBP7.7 million, based on its AUD0.29 per share closing price in Australia last Friday.
This means it is valued at 12.50 pence per Stellar share, with the stock up 53% on Monday at 7.56p. The offer is a huge premium to Stellar's closing price of 2.30p per share on January 31, the last day before the offer was announced.
So far, Newfield has received irrevocable undertakings from just under 30% of Stellar shareholders, who will vote at a meeting whose date is to be announced.
Stellar's main operation is the Tongo-Tonguma diamond mine in Sierra Leone, and the takeover by Newfield will provide it with the necessary funds to move forward with work on the project.
