Feb. 12, 2013
/CNW/ - Vitol Anker International B.V. ("
"), a wholly owned subsidiary of The Vitol Group ("
"), announced that it intends to make an offer (the "
") to acquire all of the outstanding common shares (the "
") of Sterling Resources Ltd. ("
" or the "
") (TSXV: SLG), not beneficially owned by
and its affiliates, for cash consideration of
per share in a transaction which values the fully diluted share capital of Sterling at approximately
Background to the Offer
Vitol and its affiliates provided a
loan to Sterling in early January to enable the Company to meet its short-term liquidity obligations. Since that time, Vitol has held discussions with Sterling's management and, based on the Company's inability to find an acceptable long-term financing solution,
has decided to pursue an offer for the Company. To that end, Vitol has held discussions with Sterling's board of directors (the "
") with a view to secure a board-supported transaction but these discussions have, to date, not led to an agreement. Given continuing rumours and uncertainty around the Company and its financial situation,
has made the decision to disclose its intentions.
Compelling Offer to Sterling Shareholders
The price to be paid in the Offer represents an attractive premium of:
- 79% to Sterling's closing price on February 12, 2013, the last business day prior to this announcement; and
- 48% to Sterling's 20-day volume-weighted average price as at February 12, 2013.
The cash price to be paid in the Offer provides Sterling's shareholders with certainty of value and immediate liquidity.