Iluka Resources £215 million acquisition of Sierra Rutile

7/12/2016
Public acquisition

£ 215 million

$ 285.555 million

Completed

7/12/2016


Overview:

  • Australian based producer Iluka Resources has announced the £215 million acquisition of mining company Sierra Rutile
  • Sierra Rutile is listed on the AIM stock exchange in London, is incorporated on the British Virgin Islands and operates on the mineral sands of Sierra Leone.
  • Owned by Swiss based Pala Investments, Iluka Resources is a global player in the mineral sands industry and announced the acquisition in line with the global commodities cycle.
  • The company offered shareholders 36p per Sierra Rutile share. 
  • Pursuant to BVI law the acquisition needed the approval of a majority of Sierra Rutile's shareholders.
  • The acquisition eventually closed after "an eleventh hour disagreement surrounding tailings dams was resolved", in December 2016, following doubts it would be completed.
  • Complications arose when Iluka notified Sierra Rutile in late November that "it was not satisfied with certain geotechnical risks forming part of the latter’s operations in Sierra Leone". 

John Crabb - Journalist 

Additional reporting: Myles McCormick, Industrial Minerals 

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