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Neo Material shareholders back deal with Molycorp
Thursday 31 May 2012

31 May 2012 - US-based rare earth oxide (REO) producer Molycorp Inc (NYSE:MCP) said the shareholders of its Canadian takeover target Neo Material Technologies Inc (TSE:NEM) had voted in support of the CAD1.3bn (USD1.3bn/EUR1bn) cash and stock combination.

At a meeting on 30 May, shareholders controlling 99.9% of the Canadian rare earth processor's votes cleared the transaction agreed in March.

Molycorp's president and CEO, Mark A. Smith, welcomed the support by Neo Materials' shareholders given to the merger which will create a top global rare earth and advanced materials company.

According to the terms of the definitive agreement, Molycorp will pay CAD8.05 a share cash and 0.122 of its shares for each Neo Materials share, resulting in a price per share of CAD11.30. The cash portion will cover around 71.2% of the total price, with the remaining to be paid in stock.

Through this acquisition Molycorp will expand its global presence across 11 countries and gain new technology and processing experience to improve its services to existing and new customers, it has said.
The buyer also expects the deal to immediately boost its earnings and ensure strong future returns.

The closing of the transaction is seen to occur soon after the hearing on 8 June for the final approval of the Ontario Superior Court of Justice, granted all remaining conditions are met, the buyer said.

The cash part of the price will be financed via cash on hand and debt.
Details
Date Published: 31/05/2012
Target: Neo Material Technologies Inc
Country: Canada
Deal Size: 1.3bn (USD)
Sector: Metals/Mining
Type: Corporate acquisition
Financing: Cash & Stock, Cash & Debt, Existing resources
Status: Agreed
Buyer: Molycorp Inc

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