Australian Vanadium hikes merger offer

Australian Vanadium has raised its offer to acquire Technology Metals Australia in what the junior miner says is its best and final proposal.

The companies today announced on the market that Australian Vanadium Limited has increased the total consideration offered under the scheme arrangement, with TMT shareholders able to hold about 42 per cent of the merged group.

The total consideration has increased from 12 AVL shares for every TMT share to 14 AVL shares.

In the market statement, AVL said the revised scheme would allow TMT shareholders to gain greater exposure.

“AVL has confirmed the revised scheme consideration is its best and final proposal as to consideration under the scheme and AVL will not increase the consideration further, subject to no competing proposal for TMT emerging,” the ASX statement reads.

The implied value of the revised scheme consideration is 30.8 cents a TMT share, according to AVL.

The TMT board of directors recommended shareholders vote for the scheme.

Both companies have been in a trading halt since Monday.