Shenghe Resources raises Peak Rare Earths acquisition price to $195m

Shenghe Resources Holding Co. announced an adjustment to its acquisition price for 100% equity in Peak Rare Earths Limited. The initial offer of AUD 158 million has been increased to AUD 195 million. This decision follows significant increases in rare earth product market prices since the initial agreement.

The adjusted price remains within Peak Rare Earths Limited's original valuation range of AUD 170-196 million. The acquisition will now be carried out by Shenghe Resources (Singapore) Pte. Ltd., a wholly-owned subsidiary, using its own overseas funds. Shenghe Singapore currently holds 19.7% of Peak Rare Earths.

The acquisition has secured approval from the Tanzanian Mining Commission but still requires approvals from the Tanzanian Fair Competition Commission, Peak Rare Earths shareholders, and the Australian courts. Shenghe Resources stated that the price adjustment is commercially reasonable, manageable within its financial capacity, and aims to accelerate the transaction's progress.