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Vitol Anker International to buy Sterling Resources for $192 million

Staff writer |
Vitol Anker International B.V. intends to make an offer Sterling Resources Ltd. for $0.85 per share. That values the transaction at approximately $192 million.

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Vitol Anker International B.V. is a wholly owned subsidiary of The Vitol Group. Vitol and its affiliates provided a US$12 million loan to Sterling in early January to enable the company to meet its short-term liquidity obligations. Since that time, Vitol has held discussions with Sterling’s management and Vitol Anker has decided to pursue an offer for the company.

The price to be paid in the offer represents a premium of 79% to Sterling’s closing price on February 12, 2013, the last business day prior to this announcement; and 48% to Sterling’s 20-day volume-weighted average price as at February 12, 2013. Vitol Anker is prepared to immediately enter into further discussions with Sterling to provide additional interim financing for the period whilst the Offer is outstanding.

Vitol Anker has received support for the offer from Sprott Asset Management LP which holds approximately 9.9% of the shares. Sprott and Vitol Anker have entered into a lock-up agreement under which Sprott has agreed to tender its shares to the offer, subject to certain conditions.

The offer, a subject to usual and customary conditions, will be made by Vitol Anker which together with its affiliates currently holds approximately 14.0% of the sShares.

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