Hastings To Acquire 22.1% Shareholding In Neo Performance Materials - Quick Facts

(RTTNews) - Hastings Technology Metals Ltd has entered into a binding share purchase agreement with an affiliate of Oaktree Capital Management, L.P. to acquire 8,974,127 common shares in Neo Performance Materials Inc. (NEO.TO), representing a 22.1% shareholding in Neo. The deal has been agreed at a price of C$15.00 per Neo share, representing a total consideration of C$135 million. Upon completion of the acquisition, Oaktree's representatives on the Neo board have agreed to step down, and Hastings intends to seek representation which is commensurate with its shareholding.

Headquartered in Toronto, Ontario, Canada, Neo is a producer of NdFeB magnets and rare earth materials globally. Hastings sees the acquisition as the first step in its Hastings 2.0 strategy, to create a fully-integrated mine-to-magnet supply chain business.

Hastings also announced that Wyloo has committed to subscribe for A$150 million of secured, redeemable, exchangeable notes to be issued by Hastings, with the proceeds used to fund the proposed acquisition. Following completion of the notes issue, Wyloo will be entitled to nominate a director to the Board of Hastings, subject to Wyloo holding an equity interest in Hastings of greater than 12.5%.

Hastings noted that it has no current intention to make a takeover offer for Neo nor to acquire any more shares in Neo.