Peak Rare Earths (ASX: PEK) has advised that takeover suitor Shenghe Resources has raised its cash offer under the proposed scheme of arrangement to acquire the company.
The revised proposal values Peak at A$195 million, up from the initial A$158m, and delivers shareholders a 32% premium to the last closing price.
Shenghe has described the increased offer as best and final, subject to no competing proposal emerging.
Higher Scheme Consideration
The uplift means shareholders will now receive not less than $0.443 cash per share, an increase on the original $0.36 minimum.
That figure could rise to $0.453 if all performance rights lapse before the scheme takes effect.
The new terms equate to a 269% premium to Peak’s $0.12 share price on 9 May, the last trading day before the original scheme announcement.
The amended offer also represents an increase of approximately 23% to the minimum cash consideration payable under the original proposal.
Unanimous Board Approval
Peak’s independent board committee continues to unanimously recommend shareholders vote in favour of the scheme, in the absence of a superior proposal.
That recommendation is subject to an independent expert maintaining that it is in the best interests of investors.
Committee members also intend to vote their own shares in favour, subject to the same conditions.
The scheme is still subject to shareholder and court approvals, and shareholders who have already submitted proxy forms can revise their instructions if required.
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