19th Apr 2018 16:28
LONDON (Alliance News) - Stellar Diamonds PLC said Thursday that at a general meeting Thursday all the resolutions were passed by more than 99% majorities regarding the acquisition of Stellar by Newfield Resources Ltd.
Shares in Stellar Diamonds closed down 0.4% Thursday at 5.60 pence each.
The company agreed final terms with Newfield last month. 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 at the beginning of March.
This means it is valued at 12.50 pence per Stellar share. 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.
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.