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Trident Royalties PLC on Thursday agreed a £144 million takeover approach from industry peer, Deterra Global Holdings Pty Ltd.
The cash bid values each share in Trident, the diversified mining royalty company, at 49 pence each.
Shares in Trident rose 20% to 47.90p each in London on Thursday morning.
The offer represents a 23% premium to Trident’s closing share price of 40p on Wednesday.
Deterra Royalties Ltd, which owns Deterra Global, is based in Perth, Australia and listed on the ASX exchange with a market capitalisation of around A$2.4 billion, £1.3 billion.
Deterra said Trident’s Thacker Pass lithium asset aligns squarely with its target investment criteria. Trident’s other assets, including its La Preciosa Silver royalty and Mimbula copper royalty, will assist Deterra in its diversification efforts, the firm added.
Trident Non-Executive Chair Peter Bacchus said: ‘While the Trident board remains confident in Trident’s ability to succeed as an independent business and to continue delivering strong results and growth in the future, the offer from Deterra offers Trident shareholders both liquidity and an immediate cash premium. As such, it presents an opportunity for our shareholders to accelerate and de-risk the recognition of Trident’s potential future value creation, and realise a certain cash exit for their investment.’
Deterra said the bid has support from around 29% of Trident shareholders.
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