Australia: Galaxy, General confirm $700m merger

Galaxy Resources and General Mining have confirmed a friendly, scrip-based merger, as flagged by WestBusinesslast week.

Under the terms of the deal, General Mining shareholders will receive 1.65 new Galaxy shares for every one of their shares. The deal gives General Mining a value of $216 million or 65.2 cents a share.

The deal has been unanimously accepted by General Mining directors, who will also accept the offer in respect of their own shareholdings.

The merged group will have a pro-forma market capitalisation in excess of $700 million.

Shares in the two companies rose sharply today after emerging from a trading halt, suggesting investors of both companies like the deal.

General Mining shares were up 9.5 cents, or 15.45 per cent, to 71 cents at the close while Galaxy shares were also up 4.5 cents, or 11.39 per cent, to 44 cents.

The two companies said the merger created a leading diversified, global lithium producer well positioned for continued project expansion and development and further opportunities.

Full Content: Yahoo News

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