By Amin Kef (Ranger)
In a significant corporate move, Leonoil Company Limited has successfully acquired over 90% of Sierra Rutile Holdings Limited, cementing its control of the mining company. Following this major acquisition, Leonoil is set to proceed with the compulsory acquisition of the remaining shares, ensuring all Sierra Rutile shareholders receive compensation at the same rate as the initial off-market takeover bid. The entire acquisition process is anticipated to be completed within five to six weeks, adhering to the statutory procedure.
Once the compulsory acquisition is finalized, Sierra Rutile’s shares will be suspended from trading and subsequently delisted from the Australian Securities Exchange (ASX). This marks a pivotal moment in Sierra Rutile’s corporate history as Leonoil steps in as the controlling shareholder.
Following the announcement of Leonoil’s successful acquisition, significant changes have taken place at Sierra Rutile’s leadership level. Two key figures, Mr. Graham Davidson and Mr. Jan Joubert, have resigned from the Board, effective from September 23, 2024. These resignations paved the way for Mr. Mohamed Cole, a recently appointed representative from Leonoil, to assume the role of Chairman of the Sierra Rutile Board as of September 20, 2024. Mr. Cole replaces Mr. Greg Martin, who will continue to serve as an independent non-executive director on the Board.
The reshuffled Board now includes three Leonoil representatives—Mr. Mohamed Cole, Mr. Ibrahim Cole, and Mr. Patrick Lambert—who will be working alongside Sierra Rutile’s Managing Director and CEO, Mr. Theuns de Bruyn. Additionally, independent non-executive directors, Mr. Greg Martin and Mr. Patrick O’Connor, will continue to serve on the Board.
Leonoil’s acquisition of Sierra Rutile is expected to bolster its position in the mineral extraction industry, while shareholders of Sierra Rutile await the finalization of the takeover.
