Highlands shares soar 37pc on friendly takeover offer
A friendly takeover offer from global battery metals investor Cobalt 27 has sent the share price of nickel and cobalt miner Highland Pacific up almost 37 per cent in morning trade.
Highlands Pacific (ASX:HIG) told investors that TSX-listed Cobalt 27 would buy the rest of Highlands that it didn’t already own for 10.5c per share – a 43.8 per cent premium to the December 24 closing price of 7.3c.
And they’re offering a bonus: the offer will increase to 11.5c if the nickel spot price exceeds $US13,220 per tonne for five consecutive day days before the end of 2019.
It has a way to go though, with the LME spot price for nickel currently at $US10,590 per tonne.
The deal still needs the approval of the PNG government and 75 per cent of Highlands shareholders.
Highlands’ largest shareholders who collectively hold 30.1 per cent of the company have already said they will accept the proposal.
Highlands’ main asset is its 8.56 per cent interest in the $2.bn Ramu nickel-cobalt mine in PNG.
The massive operation has about 1 billion pounds of nickel and 100 million pounds of cobalt in reserves, which should keep it running for at least 30 years.