Sierra Rutile Holdings' Response to Leonoil's Takeover Bid

Sierra Rutile Holdings Limited (ASX: $SRX) has issued a Target's Statement in response to an off-market takeover bid by Leonoil Company Limited to acquire all Sierra Rutile shares it does not own at a price of A$0.18 cash per share. The company's directors unanimously recommend accepting the offer in the absence of a Superior Proposal. The offer price represents a significant premium to historical trading prices, provides certainty of value, and avoids future funding and associated dilution risk.

Executive Commentary on Leonoil's Takeover Offer

The offer from Leonoil Company Limited presents an attractive opportunity for Sierra Rutile shareholders to realize a significant premium to historical trading prices and avoid potential funding and dilution risks. The directors' unanimous recommendation to accept the offer reflects our confidence in the value it provides and the potential risks associated with not accepting the offer. Shareholders are encouraged to carefully consider the offer and its implications for their investment.

Summary of Sierra Rutile Holdings' Response

Sierra Rutile Holdings Limited (ASX: $SRX) has responded to Leonoil's off-market takeover bid by recommending acceptance of the A$0.18 cash per share offer. The directors emphasize the premium nature of the offer, its certainty of value, and the avoidance of future funding and dilution risk. Shareholders are advised to consider the potential risks associated with not accepting the offer, including changes to the company's strategic direction and potential removal from the official list of ASX. The offer period is open until 9 September 2024, and shareholders are encouraged to seek independent financial advice before making a decision.