Approximately 26 per cent of Technology Metals Limited Australia (TMT) shareholders, along with its majority shareholder Resource Capital Fund, have already voted in favour of the company being acquired by Australian Vanadium (AVL).
The $217 million merger, announced yesterday, sees AVL acquiring 100 per cent of TMT shares on issues to consolidate a single Australian-focused vanadium company.
“It is very encouraging that TMT’s largest institutional shareholders are supportive of the proposed merger with AVL,” TMT managing director Ian Prentice said.
“Similar to the TMT management team and board, these shareholders recognise the significant benefits through the consolidation of these contiguous orebodies and technical teams. TMT and AVL believe the merger will help accelerate the development of the combined project to the benefit of both sets of shareholders.
“TMT now has voting intention statements from shareholders representing approximately 26 per cent of TMT shares on issue which demonstrates the strong support for the proposed merger with AVL.”
The written voting support statements are in addition to the previously announced support of TMT’s largest shareholder, Resource Capital Fund which has stated it intends to vote in favour of the acquisition.
Under the agreement, TMT shareholders will receive 12.00 AVL shares for every TMT share held on the scheme record date. This implies an offer price of $0.324 per TMT share based on AVL’s last close price of $0.027.
