SYDNEY--Independence Group NL (IGO.AU) Monday said it plans to acquire Australian rival Sirius Resources NL (SIR.AU) in a deal worth 1.8 billion Australian dollars (US$1.4 billion).
Independence Group said Sirius shareholders would receive 0.66 shares in Independence for each share they currently hold in Sirius, as well as cash of A$0.52 per share. Sirius investors will also receive roughly one share in S2--a new company that will hold Sirius's Polar Bear and Scandinavian exploration assets--for every 2.5 shares held in the company.
It said the deal values Sirius at A$4.38, a 35% premium to the miner's last traded share price of A$3.24.
Shareholders will vote on the deal at meetings expected to be held in late August, said Independence, which aims to complete the acquisition in September.
SIR Price at posting:
$3.24 Sentiment: Buy Disclosure: Held
