- Neo Performance Materials Inc.’s (NEO) common shares, worth $135 million, have been acquired by Hastings Technology Metals Ltd.
- Through an affiliate, roughly 22.10 per cent of Neo common shares will be sold for $15.00 per share
- Neo is an international producer of neo magnets and rare earth materials
- Hastings shared it has no current intention to make a takeover offer for Neo
- Neo Performance Materials Inc. (NEO) is up 12.91 per cent and is trading at $16.79 per share as of 1:40 p.m. ET
Neo Performance Materials (NEO) common shares have been acquired by Australia-based Hastings Technology Metals and an unnamed affiliate.
Neo stated that, through an affiliate, roughly 8.97 million of its common shares, worth $135 million, will be bought by Hastings Technology for $15.00 per share.
Neo is an international producer of neo magnets and rare earth materials and is the owner of the only operating commercial rare earth separation and rare metals facility in Europe. Neo is currently accelerating plans to expand its rare earths separation operations in Estonia and construct a new factory to manufacture sintered neo permanent magnets.
According to Neo, the proposed acquisition will provide Hastings with a strategic stake in Neo and exposure to its magnetic materials business, as well as a platform to explore potential partnership arrangements utilising Hastings’ Yangibana feedstock in Neo’s downstream rare earth operations.
Once the acquisition has been completed, the involved affiliate representatives on the Neo board have agreed to step down, and Hastings intends to seek representation which is commensurate with its shareholding. Hastings shared it has no current intention to make a takeover offer for Neo nor to acquire any more shares in Neo.
Neo Performance Materials Inc. (NEO) is up 12.91 per cent and is trading at $16.79 per share as of 1:40 p.m. ET.