Australian Vanadium (AVL) and Technology Metals Australia have increased the total consideration offered under their scheme of arrangement.
In late September, it was announced that both companies would merge in a $217 million agreement.
Under the agreement, AVL will acquire 100 per cent of Technology Metals Australia shares on issues.
Originally, Technology Metals Australia shareholders were to receive 12.00 AVL shares for every Technology Metals Australia share held on the scheme record date.
The amount has now increased to 14.00 AVL shares for every one Technology Metals Australia share.
Based on the closing price of AVL shares on December 8, the implied value of the revised scheme is now $0.308 per Technology Metals Australia share.
This represents a premium of 43.3 per cent to the closing Technology Metals Australia share price of $0.215 per Technology Metals Australia share on December 8.
If the scheme is implemented, Technology Metals Australia shareholders will hold about 42 per cent of the merged group.
AVL has confirmed the revised scheme is its best and final proposal, and the Technology Metals Australia board has unanimously recommended that its shareholders vote in favour of the scheme.
The deal aims to consolidate both companies into single Australian-focused vanadium company.
“The combination of Australian Vanadium and Technology Metals Australia is transformational for both companies and marks a significant milestone in both management teams’ efforts to develop their respective projects,” AVL chief executive officer Graham Arvidson said in September.
“The logical consolidation of two adjoining projects on the same orebody will unlock material synergies for both sets of shareholders.
“If successful, the transaction will create the leading ASX-listed vanadium developer and a world-class asset of scale located in a Tier-1 mining jurisdiction.”
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