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Key points
- The Andromeda share price surged 13.95% today
- Andromeda's takeover offer for Minotaur was "overwhelmingly" accepted
- Only a few conditions remain before takeover at the end of January
The Andromeda Metals Ltd (ASX: ADN) share price is in the news again today following an update on its takeover offer for Minotaur Exploration Ltd (ASX: MEP).
At market close, the Andromeda share price was up 13.95% trading at 24 cents apiece, and the Minotaur share price was up 12.5% trading at 27 cents.
Andomeda's takeover decision
Today, Andromeda announced that Minotaur shareholders had approved the proposed demerger of its copper and gold assets into its subsidiary Demetallica at its general meeting today.
This means all non-kaolin related assets, including copper, gold and other projects in Queensland and South Australia, will be moved under the umbrella of Demetallica.
Demetallica will then push for an initial public offering (IPO) and apply for ASX listing in April.
The demerger was one of the major conditions of Andromeda's takeover offer, and leaves just a few other conditions to be addressed before finalising on 7pm 31 January, unless extended or withdrawn.
This includes a including a minimum 90% acceptance of the offer, no "material adverse advent" or "prescribed occurrences".
The demerger, which was a condition of the takeover offer, was made today at the Minotaur general meeting.
Last days for Minotaur Exploration
Just yesterday, Minotaur released its cash flow and activities update for the quarter ending 31 December, reporting it had $5.61 billion available in funding for future operating activities — a potential draw for Andromeda investors.
Today, Minotaur non-executive chair Roger Higgins addressed shareholders for potentially the last time. He said:
If the demerger resolutions are carried today Minotaur will inevitably become a subsidiary of Andromeda Metals Ltd (ASX: ADN) and, in due course, very likely be removed from the ASX list.
But not everyone will be seeing these new changes for the companies — today, Andromeda chair and non-executive director Rhoderick Grivas announced his resignation due to "family reasons".
Andromeda share price snapshot
The Andromeda share price dropped by almost 20% in the past 12 months. It hit its 52-week-low of 14 cents in mid September, just before announcing positive HPA test results from its Canadian facility.
The company has a market capitalisation of $534 million and 2.48 billion shares outstanding.
