Join our daily newsletter At The Bell to receive exclusive market insights
Rex Minerals (ASX:RXM) shares soared 61.82% to 44.5cps heading into lunchtime trades on Monday as the company fields a takeover bid from an Indonesian-owned company valued just shy of A$400M.
Under a scheme deed with MACH, Rex will see all shares not currently owned by MACH snatched up at 47cps. This is an 80% premium to the recent trading average.
The Australian government has not yet approved the deal but the market’s reaction to the news suggests a confidence from the market it will go ahead. Rex’s board unanimously recommended shareholders take the deal which reflects 2.9% of shares held.
Rex CEO Richard Laufmann was palpably bullish on the deal.
“This Transaction also represents a more certain outcome for wider stakeholders in Hillside, including the local community, the South Australian Government and Rex employees who will benefit from the significant financial strength and proven track record of MACH to deliver the successful development of Hillside,” Laufmann said.
“The South Australian Government has been a leader in Australia in support of decarbonisation and copper development. The successful development of Hillside will very much align with their strategy.
“Subject to approvals, we look forward to working with MACH through to completion and watching them develop the Hillside Project, Australia’s largest fully permitted and shovel ready copper project.”
The fact of an Indonesian company’s involvement is worth noting given the country became the world’s largest nickel exporter out of the blue in the early 2020’s.
The nickel market is currently viewed by some as being swamped with Indonesian laterite nickel, which has pushed down prices and led to a situation where traders are awaiting BHP’s annual report to figure out just how bad the writedown at Nickel West looks. A number of other nickel explorers have also pivoted to other metals or downsized operations.
RXM last traded at 44.5cps.
