Argonaut acted as financial advisor to the TSX listed Cobalt 27 on its successful $114 million acquisition of Highlands Pacific Limited (ASX: HIG) (“Highlands”) via a Papua New Guinea Scheme of Arrangement (Scheme) in. Highlands is a partner in the world-class Ramu Nickel-Cobalt Mine located in PNG.
Under the Scheme Cobalt 27 offered to acquire all the shares in Highlands at a price of $0.105 per Highlands Share, representing a 43.8% premium to last close and valuing Highlands at $114 million. The offer consideration would increase by $0.010 cash per share to $0.115 if the closing spot price of nickel exceeds US$13,220 per tonne over 5 consecutive trading days. The offer was recommended by Highland’s Board with 86.9% of eligible shareholders voting in favour of the Scheme resolution which became effective in May 2019.
This transaction reflected Argonaut’s expertise in advising on complex cross-border transactions. Our client was a TSX listed company acquiring a PNG incorporated company dual listed on ASX and the Port Moresby Stock Exchange that had as a major shareholder a Chinese SOE. In addition, Highland’s two core projects are in JV with separate Chinese SOEs.
Argonaut congratulates Cobalt 27 on the successful acquisition of Highland’s and looks forward to providing further assistance to Cobalt 27 in the future.
Additional information regarding Cobalt 27 can be found on the company’s website at www.cobalt27.com