M&A

Pala sweetens Cobalt 27 offer

Swiss-based private equity group Pala Investments has improved its takeover offer for Canadian metals firm Cobalt 27 Capital in response to shareholder feedback, says Pala managing director Stephen Gill.

Staff Reporter
Private equity group Pala Investments has improved its takeover offer for boutique metals firm Cobalt 27

Private equity group Pala Investments has improved its takeover offer for boutique metals firm Cobalt 27

Under its revised terms, Pala has increased the cash payment to C$4 per share, up from C$3.57, adding US$23 million (C$30 million) to the deal that created Nickel 28 Capital, which is designed to retain Cobalt 27's existing nickel-focused assets.

The amended deal therefore gives Cobalt 27 shareholders C$5.92 per share, comprising cash and one share of Nickel 28 with an implied value of C$1.92 each. The deal is now valued at $382.79 million (C$506.2 million).

Pala will also repay Cobalt 27's net debt, leaving Nickel 28 with no corporate debt and funding of $5 million cash upon closing.

"We are pleased to provide these significantly improved transaction terms to Cobalt 27 shareholders on a best and final basis. We believe that these terms are responsive to shareholder feedback and fully value the company," Gill said.

Cobalt 27 said its board continued to support the Pala offer and shareholders were urged to vote in favour of the transaction during a special meeting now scheduled for October 11.

Shareholder Anson Funds had earlier opposed the deal, stating it ‘undervalued' the company.

Cobalt 27 shares (TSXV:KBLT) closed 4% higher on Tuesday at C$4.16 on heavy trading volumes. The company has a C$355 million market capitalisation.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.