Craig Dean
Sierra Rutile, a mineral sands company, faces a takeover bid from PRM Services LLC, owned by Craig Dean. The offer, priced at $0.095 per share, has met resistance from Sierra Rutile’s board of directors, who have deemed it inadequate and opportunistic. In a statement released to shareholders, Sierra Rutile’s Directors urged them not to take any action regarding the takeover bid.
They believe the offer needs to reflect the company’s value, especially considering upcoming value catalysts such as the Sembehun DFS. The Board also noted that PRM’s actions indicate a desire for control without offering a fair premium to shareholders. Sierra Rutile’s Area 1 operation, supported by a strong balance sheet, is considered a critical asset by the Directors.
The upcoming Sembehum DFS, scheduled for mid-April 2024, is expected to demonstrate significant value for the company. Additionally, the mineral sands market shows signs of improvement, further adding to Sierra Rutile’s strategic value.
The Board highlighted that accepting the offer would prevent shareholders from participating in any potential increase in the offer price or considering superior proposals.
They pointed out that Sierra Rutile’s share price has consistently remained above the A$0.095 offer price since the bid was announced. Chairman Creg Martins expressed the board’s view that the offer is opportunistic and undervalues the company. He emphasised the need for shareholders to carefully consider their options and not rush into accepting the bid from PRM Services LLC. PRM Services LLC, registered in Puerto Rico, is owned by Craig Dean, who also holds a 75% stake in Gerald Group.
Interestingly, Gerald Group owns Marampa Mines in Sierra Leone, adding a layer of complexity to the takeover bid for Sierra Rutile. As the battle for control of Sierra Rutile continues, it remains to be seen how shareholders will respond to PRM’s offer and whether competing bids will emerge.
The board’s resistance to the takeover bid suggests that Craig Dean’s strategic move may face challenges in acquiring complete control of Sierra Rutile. Shareholders are advised to stay informed and consider all aspects before making decisions regarding the company’s future.
