TMT and Australian Vanadium scheme of arrangement set for hearing

A Supreme Court of Western Australia hearing to approve the previously reported merger via a scheme of arrangement between Technology Metals Australia (ASX:TMT) and Australian Vanadium (ASX:AVL) will take place on 19 January 2024. 

The hearing is subject to Technology Metals shareholders by the requisite majorities approving the scheme of arrangement at a scheme meeting on 16 January. 

Mining.com.au reported on 25 September 2023 both companies have agreed to a $217 million merger in a synergistic bid to become Australia’s first operating primary vanadium producer. 

If the scheme is approved, existing Australian Vanadium shareholders will hold the majority of the combined entity.

a scheme of arrangement is a shareholder and court-approved statutory arrangement between a company and its shareholders that becomes binding on all shareholders. The scheme structure can be used to reconstruct a company’s share capital, assets or liabilities.  It is typically used by listed companies in Australia to merge with or acquire other businesses.

There are a number of conditions precedent to a scheme that must be satisfied.

If a scheme is approved by the requisite majorities and by the court, and all other conditions are satisfied or waived (where applicable), all of the target shares will be transferred to the bidder for the proposed scheme consideration. This will include the target shares held by shareholders who voted against the scheme.

If a scheme is not approved by the requisite majorities or the court, the target will remain an independent company and its shareholders will continue to hold their shares in the target.

Write to Aaliyah Rogan at Mining.com.au     

Images: Technology Metals Australia
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.