Anglo Pacific Group PLC - London-based natural resources royalty and streaming - Launches share placing to finance purchase of a 70% net interest in a stream on cobalt production from the Voisey's Bay mine in Canada from private equity sellers for USD205 million in cash, plus USD27 million in contingent consideration. Voisey's Bay is a nickel-cobalt-copper mine in Labrador operated by Vale Canada Ltd, part of Brazil's Vale SA.
To fund the purchase, Anglo Pacific has launched a share placing with institutional investors of up to 20% of its existing shares. Its current market capitalisation is GBP238.4 million, meaning the placing is worth up to about GBP48 million. It also will make an offer to retail investors worth up to EUR8 million via the PrimaryBid platform. The placing will be conducted through an accelerated bookbuild run by RBC Europe, Peel Hunt and Berenberg and will set the price for both the placing and the retail offer. Anglo Pacific also has agreed a new USD180 million credit facility with a syndicate of Canadian banks.
The agreement will reposition Anglo Pacific away from coal toward battery-related materials, which now will account for 61% of its royalty portfolio. "The transaction is expected to be immediately earnings accretive and provides exposure to a market that is fuelled by the fast-growing future demand for electric vehicles," Anglo Pacific says.
Current stock price: 133.60 pence
Year-to-date change: up 4.5%
By Tom Waite; thomaslwaite@alliancenews.com
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