Jupiter has announced its intention to relist on the Australian Securities Exchange to provide liquidity for all of its shareholders.
This is expected to be achieved through a AU$200 million to $240 million offer of existing Jupiter shares to new investors at $0.40 per share, implying a value of $780 million for Jupiter.
Pallinghurst (PRL) has committed to supporting Jupiter in this initiative, with Jupiter thereafter continuing its development as an independent ASX-listed company.
To achieve the “free float” reasonably required for a successful IPO, four of the large Jupiter shareholders have agreed to sell down some of their shareholding to new institutional investors on the Australian Securities Exchange.
Accordingly, PRL has agreed to make available between 176,411,010 shares (in an $200
million raising) and 212,028,012 shares (in an $240 million raising) at the placing price of $0.40 per share, and would thus, subject to successful completion of the IPO, receive the corresponding cash inflow of between $70.6 million and $84.8 million (less associated sale costs).
PRL will retain the balance of its shares (between 145,845,372 to 181,462,374) for realisation at an appropriate later time and has agreed to restrict the sale of this remaining interest for up to approximately 20 months under the escrow arrangements detailed in the Jupiter Prospectus.
Until then, PRL would, in relation to its remaining shares, expect to benefit from the ongoing strong performance signalled by Jupiter.
This follows strong growth from Tshipi/Jupiter. Over the past 12 months the Tshipi manganese mine has achieved record levels of production and profitability, and has made significant distributions to its shareholders, among which Jupiter Mines holds 49.9%.
The most recent distribution, through an equal access share buyback, has just been completed and was accepted by nearly 97% of shareholders, bringing to some $150 million the returns to Jupiter’s shareholders since the start of 2017.
The strong manganese prices and sound performance of Tshipi continue, and Jupiter has indicated the likelihood of a further and enhanced distribution in the next six months.
PRL is presently an 18.4% shareholder in Jupiter and benefits accordingly.