In today’s briefing:
- Latin Resources (LRS AU)’s Scheme With Pilbara Minerals
- Pacific Smiles (PSQ AU): Genesis’ Off-Market A$1.90/Share Offer
Latin Resources (LRS AU)’s Scheme With Pilbara Minerals
- Back on the 15th August, lithium play Latin Resources (LRS AU) entered into a Scheme with significantly larger peer, Pilbara Minerals (PLS AU). Timing appears fortuitous.
- PLS is offering 0.07 new PLS shares for each LRS share held. LRS shareholders will own ~6.4% of the combined entity. LRS’ largest shareholder, José Luis Manzano (7.9%), is supportive.
- The scrip terms back out an implied price of A$0.20/share or a 67% premium to last close. This is done. And trading accordingly. Expected implementation late November, early December.
Pacific Smiles (PSQ AU): Genesis’ Off-Market A$1.90/Share Offer
- After Crescent Capital ‘s National Dental Care’ (NDC) A$2.05/share Offer, by way of Scheme, failed on the 9 August. it was just a question of when Genesis re-loaded its Offer.
- Genesis has now announced a A$1.90/share off-market Offer ( its 29 July A$1.90/share approach was a Scheme), conditional on a 90% minimum acceptance. Pricing falls within the IE’ fair value range.
- Pacific Smiles (PSQ AU)‘s board previously gave unanimous support for NDC’s prior A$1.90/share Offer. The question is whether the 90% hurdle is met. I think it will.
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