Jubilee to conclude Platinum Australia acquisition by end June
JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Jubilee Platinum on Friday said its acquisition of mining exploration company Platinum Australia (PLA) had been extended until June 30.
The deal, which was initially expected to be completed by mid-May, would see Jubilee acquiring all listed ordinary shares in embattled PLA by offering existing shareholders one Jubilee share for every 2.6 PLA shares held, representing an aggregate 194.7-million Jubilee shares.
Jubilee, which would merge the assets of PLA into its own under a subsidiary after the delisting of PLA from the ASX, also noted other changes to the implementation deed, which was tabled in February, including an alteration to Jubilee’s depositary interests to accommodate ASX requirements.
The parties agreed to alter the scheme and have Jubilee’s Chess depository interests (CDIs) offered at a ratio of 0.5 Jubilee CDIs for each Jubilee share held. Each Jubilee CDI represents a beneficial interest in two Jubilee shares.
The initial offering of a 1:1 CDI ratio would likely have resulted in Jubilee CDIs having a price significantly less than 20c and failing to meet an ASX requirement dubbed the “20 cent rule”.
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