80 Mile share price climbs 7% as Greenland Energy sets merger terms Proactive uses images sourced from Shutterstock
80 Mile PLC (AIM:80M, OTCQB:BLLYF) shares climbed after Greenland Energy agreed indicative terms for a £61.48 million all-share acquisition.
80 Mile shares rose 7% to 0.80p, remaining below the approximately 1.1p implied in the proposed acquisition.
Under the proposal, each 80 Mile share would exchange for 0.01108 new Greenland Energy common shares, making the sterling value dependent on share-price and currency movements.
The implied premiums were 46.67% against the 7 September mid-market price, 42.86% against the 3 September mid-market price and 64.18% against July’s placing price.
Between 25 August and 3 September, Greenland Energy bought 246.7 million shares at 0.53p to 0.82p, with a weighted average of 0.73p, holding 4.42% of existing issued capital on 8 September.
Meanwhile, pre-conditions include Greenland Energy’s confirmatory due diligence and unanimous backing from 80 Mile’s Independent Directors, while 80 Mile requires satisfactory reverse due diligence.