SRX and Leonoil have announced a Bid Implementation Agreement under which Leonoil will acquire all issued and outstanding ordinary shares in SRX it does not already own, with no minimum acceptance condition.
Leonoil is offering A$0.18 per share, representing a 12.5% premium over Gemcorp’s A$0.16 per share offer announced on July 1, 2024. This also marks a 90% premium over the A$0.095 per share offer from PRM Services LLC announced on March 20, 2024. The Leonoil offer values SRX at A$76.4 million.
“SRX Directors unanimously recommend each holder of SRX shares accept the Leonoil offer,” the company stated, “and have indicated that they will accept the offer in respect of all SRX shares they own or control, in both instances, in the absence of a superior proposal.”
Gemcorp has not increased its initial offer price of A$0.16 per share since the announcement on July 1, 2024.
Leonoil, a major SRX shareholder with a 19.85% interest, aims to acquire the remaining SRX shares through this off-market takeover bid. The offer is free from any minimum acceptance condition, unlike Gemcorp’s 51% minimum acceptance condition.
“We believe this offer represents significant value for our shareholders,” SRX’s Board of Directors commented, emphasizing the advantages of the Leonoil bid over previous offers.
The proposed acquisition is subject to certain conditions, but Leonoil remains optimistic about the transaction.
The SRX Directors’ unanimous support for the offer highlights their confidence in the deal’s value for shareholders.
