Cobalt 27 Capital Corp. said Sept. 3 that a private streaming and royalty company withdrew an offer that would have topped the one lodged by Pala Investments Ltd.
The unnamed firm had signed a confidential, non-binding offer to acquire Cobalt 27 for C$4 per share in cash plus 1 share of spinout company Nickel 28 Capital Corp., which owns an 8.56% stake in the Ramu nickel plant in Papua New Guinea, where a waste spill was recently reported.
In comparison, Pala is offering to pay C$3.57 in cash for each Cobalt 27 share it does not already own and C$2.18 per Nickel 28 share.
However, after due diligence, the suitor decided not to proceed with its offer due to unresolved business issues, the termination fee it would be required to pay Pala, and the transaction risks in Papua New Guinea following the spill.
Cobalt 27 said its board still recommends shareholders to vote in favor of Pala's proposal during an annual and general meeting on Sept. 12.
