Kangaroo Resources Limited share price has been souring over the last week, with shares trading at $0.13 up 46.07% in today’s market.
Kangaroo Resources Limited [ASX:KRL] is a coal and mineral exploration company.
PT Bayan take over benefiting Kangaroo Resources Limited Share Price
Today, the company entered a Binding Scheme Implementation Deed (SID) with its majority shareholder — BT Bayan Resources — after announcing that it was in the beginning stages of a deed with BT Bayan back in 4 May 2018. Which is most likely why investors are seeing massive surges in the company’s share price.
Bayan will acquire all of Kangaroo’s shares that it doesn’t already own, by means of an Australian court approved Scheme of Arrangement.
As it stands, KRL has already established outstanding growth potential and now with the extra backing of BT Bayan, it seems the company can somewhat fast-track its development.
Good News ahead for Kangaroo Resources shareholders
The proposal has been looked over by Kangaroo’s independent directors who unanimously support the proposal, stating it is in the best interest of Majority shareholders, and that kangaroo shareholders should vote in favour of the proposal.
Currently, BT Bayan are majority shareholder of Kangaroo Resources shares, retaining 65.05% of shares. Once approved and deemed effective, kangaroo’s remaining non-majority shareholders will receive cash considerations
Giving shareholders an offering price of 0.15 per Kangaroo share, a substantial premium compared to Kangaroo’s historical trading price.
On the back of the SID, and if the past week is anything to go by, investors could look forward to a very attractive and long term positive moments to Kangaroo’s resources share price.
For Money Morning
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