Sierra Rutile’s (LON:SRX) board of directors and major shareholder have accepted a takeover bid from Iluka Resources that values it at £215mln.
The Sierra Leone-based mineral sands group received the 36p cash offer on Friday and said 53.4% shareholder Pala Resources had now agreed to the bid.
Including other shareholders and directors, Australia-listed Iluka has acceptances totalling 60.15%.
Sierra Rutile said the offer “provides attractive certainty and liquidity for SRL and its shareholders as a whole.”
John Sisay, Sierra Rutile’s chief executive, added that Iluka was a financially strong and established owner with a successful track record in the mineral sands sector.
David Robb, Iluka’s managing director, said: "SRL is a long life operation, with an established position in high grade chloride feedstock markets.
Iluka is confident the application of its industry-specific technical expertise, together with its market access and reach, will enhance the SRL business.”