Allens has advised Meteoric Resources Limited (ASX: MEI) on its proposed acquisition by Lynas Rare Earths Limited (ASX: LYC) by way of scheme of arrangement. The all-scrip transaction has an implied equity value of A$968 million on a fully diluted basis and a premium of 68.4% to Meteoric’s last closing share price.
Lead Partner David Gray said: ‘This is a significant transaction for both Meteoric and Lynas. The proposed acquisition would combine Lynas’ established production and processing platform with the Caldeira Rare Earth Project in Brazil, one of the world’s largest known ionic clay rare earth deposits outside China. The transaction involved a range of Australian public M&A, Brazilian regulatory and cross-border execution considerations, and it has been a privilege to work alongside the Meteoric board, management team and their other advisers throughout the process.’
The transaction comes amid growing demand for secure and diversified supplies of rare earths used in electric vehicles, renewable energy technologies, advanced manufacturing and defence applications. It also highlights the growing strategic importance of Brazil as a critical-minerals jurisdiction, particularly following recent initiatives by the Brazilian Government aimed at supporting investment and development in the critical minerals sector.
Mining Sector Leader Igor Bogdanich said: ‘Transactions involving rare earth assets of this scale remain relatively rare globally and demonstrate the strategic value being attributed to high-quality critical minerals projects. Caldeira is a globally significant rare earth deposit and this transaction further highlights Brazil’s, and South America’s emergence as an increasingly important jurisdiction for critical minerals investment and development. We’re pleased to be working with several clients on projects and investments throughout South America.’
Allens advised Meteoric throughout the transaction process, including on strategy and bidder engagement, exclusivity and confidentiality arrangements, vendor due diligence, regulatory issues, negotiation of the scheme implementation deed and associated transaction documents, and stakeholder and disclosure matters.
The Allens team worked closely with Brazilian law firm Pinheiro Neto Advogados and alongside Meteoric’s financial adviser, Macquarie Capital.
