Alkane has announced its intention to demerge its critical materials business and assets held in ASM into a new ASX listed entity by means of a Demerger, subject to shareholder approval.
If the proposed Demerger is approved and implemented, ASM will be a separately listed company which will hold an interest in the Dubbo Project, a multi-commodity development project, together with an investment in South Korean metals technology company, RMR Tech Corporation.
Under the proposed Demerger, Alkane Shareholders will receive one ASM Share for every five Alkane Shares held as part of an in specie distribution that is to be achieved through a Capital Reduction and Demerger Dividend. The Capital Reduction and Demerger Dividend will be satisfied by the distribution and transfer of ASM Shares to the Eligible Shareholders.
The intention to separate the two businesses into two independent, publicly traded companies, is the result of Alkane's intention to unlock value for existing Alkane Shareholders by providing for dedicated board and management teams.
If successful, the proposed Demerger will allow investors to increase or decrease their exposure to each of the separate businesses and will provide for greater flexibility in financing, more targeted management focus and reduced operating costs for Alkane's gold business.
Partner John Sartori commented:
"Ashurst has advised Alkane Resources Ltd on a number of significant transactions for over the past few years, and we are delighted to continue to support Alkane. The demerger is focussed on maximising shareholder value for Alkane Shareholders by enabling each of the businesses to focus on their areas of strength going forward."
Led by partners John Sartori and Roger Davies, the Ashurst team comprised Nick Terry, Alexander Kedzior and Adam Ong (Corporate Transactions), Andrew Craig and Clare Doneley (Digital Economy) and Ian Kellock and James Sainty (Tax).
