Australian mineral exploration company Azure Minerals has received the green light from FIRB for its full acquisition by SH Mining, a collaboration between Sociedad Química y Minera de Chile (SQM) and Hancock Prospecting.
Azure is valued at roughly A$1.7bn ($1.1bn) based on a fully diluted equity basis under the SH Mining deal, according to Proactiveinvestors.com.au.
As of 10 April 2024, SH Mining had acquired 39.2% of Azure.
The approval from FIRB paves the way for the takeover under the Foreign Acquisitions and Takeovers Act 1975.
SH Mining, which is jointly owned by SQM subsidiary SQM Australia and Hancock subsidiary Hanrine Future Metals, has been given written confirmation from FIRB that the Australian Commonwealth Government has no objections to the proposed scheme and the takeover offer.
The cash consideration for the scheme of arrangement is set at $3.70 per Azure share.
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In the event that the scheme does not proceed, a conditional off-market takeover offer has been set at $3.65 per Azure share.
With FIRB’s approval, the scheme now faces very few remaining conditions, mainly customary precedents and the approval of the Supreme Court of Western Australia (WA).
Azure has stated that it is not aware of any issues that might prevent the fulfilment of the scheme’s conditions.
In August last year, Azure rejected a takeover bid of A$901m from SQM.
SQM held confidential negotiations and offered a non-binding and highly conditional offer of A$2.31 per share.
At that time, Azure declined the offer, considering the increasing potential of its Andover project.
