RE: Marsfontein1 Jun 2023 09:12
Useful to remember that many of the directors were part of African Diamonds, that was bought out: UPDATE 1-Lucara agrees to buy African Diamonds for C$82 mln
By Reuters Staff
2 MIN READ
* Company to get .80 of Lucara share, 1 share in new firm
* African Diamonds will own 26.6 pct of Lucara
* Lucara to wholly own AK6 diamond discovery in Botswana
* Offer represents 27 pct premium to Friday’s close price (Adds detail)
LONDON, Oct 4 (Reuters) - Lucara Diamond Corp. LUC.V has agreed to buy exploration company African Diamonds AFD.L for C$82 million ($80 million) in a deal that will enable both companies to benefit from the AK6 diamond discovery in Botswana.
Shareholders will get .80 of a Lucara share and 1 share in a new company, Botswana Exploration Plc, for every 1 share in African Diamonds. As a result, African Diamonds will own 26.6 percent of Lucara which will wholly own AK6.
“The logic of this deal is compelling,” said African Diamonds’ chairman John Teeling. “Marrying African Diamonds and Lucara will create a C$240 million emerging diamond producer controlling 2 new kimberlite diamond mines.”
In August, African Diamonds said it rejected an unsolicited offer approach. Lucara, which currently holds a 60 percent interest in the world class AK6 diamond discovery, was seen as the most likely buyer. [ID:nLDE67C07A]
The agreed offer is at a 27 percent premium to African Diamond’s closing price on Oct. 1.
The companies plan to list Botswana Exploration, which will hold all of the interests of African Diamonds apart from AK6, on London’s junior AIM market and the Botswana Stock Exchange.
Shares in African Diamonds, which have risen 38 percent in the last three months, were up 5.6 percent at 0716 GMT.
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