Market Dynamics
Sierra Rutile Limited: Update on discussions with parties potentially interested in making an offer for the Company
Time: 2014-05-05 Source from: Sierra Rutile Limited
Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile" or the"Company") announces the cessation of discussions with parties potentially interested in making an offer for the Company. On 19 November 2013, the Company announced that it was in discussions with parties that may or may not lead to an offer being made for part or all of the Company's issued share capital. Whilst indications of interest for the Company were received, including in excess of the Company’s current market price, the opinion of the board is that these did not offer sufficient value or value certainty to Sierra Rutile’s shareholders, given the strong outlook for the Company.
Commenting on the cessation of the process, Sierra Rutile’s Chairman, Jan Castro, said: "Whilst we appreciate the attention and interest of parties in Sierra Rutile, it is our opinion that Sierra Rutile is better served exploring the numerous strategic growth options available to it at this time and the interests of our shareholders would not be best served by engaging in extended dialogue with these parties.
Sierra Rutile continues to perform very strongly from a production and cost perspective, positioning the Company positively as the TiO2 feedstock market continues to strengthen, as destocking completes and demand growth continues its already positive trend. Furthermore, given our existing low-cost base, low-capital intensity expansion options, healthy balance sheet and stable shareholder base, Sierra Rutile is extremely well positioned to be an active participant in the development of the sector over the coming months and years, and we believe these development alternatives will provide the greatest value to our shareholders".