In a landmark move for the Sierra Leone mining sector, Leonoil Company (SL) Limited, an indigenous-owned Oil Marketing Company, has secured the acquisition of Sierra Rutile Holdings Limited.
The takeover, valued at USD 76.4 million, was confirmed after the Sierra Rutile board gave its approval on Sunday, July 21, 2024, with the news released through the Australian Stock Market.
Leonoil outpaced competitors including the US-based PRM Service LLC, led by Gerald Group CEO Craig Fuad Dean, and the UK-based Gem Corp, to finalize the deal.
The companies have entered into a Bid Implementation Agreement (Leonoil BIA), allowing Leonoil to acquire all outstanding shares of Sierra Rutile Limited not already owned by them, with no minimum acceptance requirement.
Leonoil’s bid offers a 12.5% premium over the 0.16% per share bid previously proposed by Gemcorp Commodities Asset Holding Limited, which had a 51% minimum acceptance condition.
Currently holding a 19.85% stake in Sierra Rutile Limited, Leonoil’s offer values the company at an undiluted equity of AUD 76.5 million, with a commitment to pay up to AUD 61 million for the remaining shares.
The Sierra Rutile board has endorsed Leonoil’s offer and will accept it, barring a superior proposal.
This acquisition signifies a pivotal shift in Sierra Rutile’s corporate landscape, positioning it under the leadership of a Sierra Leonean firm and potentially altering the company’s trajectory.