Shareholders receive nearly double the initial offer in the final acquisition deal
King & Wood Mallesons (KWM) has successfully guided Sierra Rutile Holdings Limited (Sierra Rutile) through a complex takeover process involving three competing offers, culminating in the company's acquisition by Leonoil Company Limited (Leonoil).
KWM’s legal team provided critical support and strategic advice throughout the months-long process, helping Sierra Rutile achieve a significantly higher outcome for its shareholders.
The process began in April 2024, when PRM Services LLC (PRM) launched a hostile takeover bid offering $0.095 per share. Under KWM’s guidance, Sierra Rutile navigated multiple proposals before entering into a bid implementation agreement with Leonoil on July 21, 2024. Leonoil’s offer of $0.18 cash per share was almost double PRM’s initial bid.
By September 23, Leonoil had acquired more than 90% of Sierra Rutile’s shares, allowing it to move forward with compulsory acquisition. The deal closed on October 2, 2024, leading to Sierra Rutile’s delisting from the Australian Securities Exchange (ASX).
The KWM team, led by partner Nigel Hunt, played a key role in managing the competing proposals and ensuring a favorable outcome for Sierra Rutile’s shareholders.
“Congratulations to Sierra Rutile on this significant transaction. After months of hard work from all involved, we achieved an outcome that nearly doubled the initial offer, positioning the company and its stakeholders well for the future,” Hunt said.
