In a significant development for Sierra Leone’s mining industry, Sierra Rutile Holdings Limited has agreed to be acquired by Leonoil, a prominent local company. Leonoil has offered A$0.18 per share, an offer that has been unanimously recommended by Sierra Rutile’s board of directors.
The board has urged shareholders to accept the offer, with one board member stating, “We believe this offer represents the best value for our shareholders and is in the company’s best interest.”
The acquisition marks a major shift in the ownership of Sierra Rutile, potentially bringing a significant portion of the country’s mining industry under local control. Leonoil, known for its extensive network of fuel stations across Sierra Leone and West Africa, is entirely Sierra Leonean-owned. The move is seen as a step towards greater local ownership in key industries.
This deal comes after Gemcorp Commodities Assets Holdings Limited, another bidder, made a lower offer of A$0.16 per share. However, Gemcorp has since withdrawn its proposal, leaving Leonoil as the sole bidder.
“With no competing proposals on the table, Leonoil’s offer is clearly the best option for our shareholders,” the board stated in their recommendation.
Leonoil’s offer was confirmed as final on August 15, 2024. The directors of Sierra Rutile, who hold shares in the company, have already accepted or are in the process of accepting the offer.
For shareholders, the board’s recommendation is clear: “We strongly encourage all shareholders to accept Leonoil’s offer, as we do not anticipate any superior proposals.”
This acquisition underscores the growing influence of local companies in Sierra Leone’s economy, with Leonoil set to play a pivotal role in the mining sector. The deal is expected to close following shareholder approval, further cementing Leonoil’s presence in the industry.
