PERTH – Uranium developer Lotus Resources on Thursday announced a merger with fellow listed A-Cap Energy to create an Africa-focused uranium player.
Under a scheme of arrangement, A-Cap shareholders would receive one new Lotus share for every 3.54 shares held, implying a value of 5.2c a share for A-Cap shares. The implied value offered a 10.4% premium to the company’s 30-day volume weighted average share price and a 20.7% premium to the company’s last closing price on July 11.
The A-Cap board has unanimously recommended that shareholders accept the offer, in the absence of a superior proposal and subject to an independent expert concluding that the offer was in the best interest of shareholders. If the share scheme is approved and implemented, Lotus shareholders will hold approximately 79% of the merged group and A-Cap shareholders will hold approximately 21% of the merged group.
“To A-Cap Energy shareholders, this merger provides immediate value realisation at a premium,” said A-Cap deputy chairperson“It also provides the opportunity to become a shareholder in Lotus, a larger, more liquid vehicle, while retaining meaningful exposure to Letlhakane and significant leverage to the global uranium thematic. Becoming a part of a larger group significantly reduces development, funding and execution risk.