Sierra Rutile and Iluka continue merger talks beyond deadline

15th Sep 2016 10:34

(ShareCast News) - Sierra Rutile updated the market on its merger transaction with Iluka Investments on Thursday, after a significant deadline elapsed in their agreement."As noted in the parties' respective announcements of 6 September, the Merger Implementation Agreement dated 31 July provided for a five business day period for SRL and Iluka to seek to agree how to proceed in respect of the Phase II Proceedings," the AIM-traded company said in a statement."That five business day period elapsed on 14 September, however as announced, SRL and Iluka continued discussions in relation to how to proceed in respect of the Phase II Proceedings."SRL's board said both itself and Iluka advised each other that, without prejudice to their rights under the agreement, they intend to continue to discuss for a further period of 30 business days as to how to proceed in respect of the Phase II Proceedings."Each of Iluka and SRL have confirmed to the other that they do not presently intend to exercise their respective rights to terminate the MIA in connection with the Phase II Proceedings, but reserve their right to do so at any time during the consultation period."Meanwhile, the board said the two companies will continue to cooperate to assist the German Antitrust Authority with its review of the merger during the Phase II Proceedings."SRL's engagement with the Government of Sierra Leone regarding capital gains tax will also continue in parallel with the discussions in respect to the Phase II Proceedings."SRL and Iluka will continue to update shareholders on the progress of the Merger, as appropriate."At 0937 BST, shares in Sierra Rutile were down 1.61% at 29.02p.