ROTTERDAM, Netherlands, Feb. 12, 2013 /CNW/ - Vitol Anker International
B.V. ("Vitol Anker"), a wholly owned subsidiary of The Vitol Group ("Vitol"), announced that it intends to make an offer (the "Offer") to acquire all of the outstanding common shares (the "Shares") of Sterling Resources Ltd. ("Sterling" or the "Company") (TSXV: SLG), not beneficially owned by Vitol Anker and its
affiliates, for cash consideration of $0.85 per share in a transaction which values the fully diluted share capital
of Sterling at approximately $192 million.
Background to the Offer
Vitol and its affiliates provided a US$12 million loan to Sterling in
early January to enable the Company to meet its short-term liquidity
obligations. Since that time, Vitol has held discussions with
Sterling's management and, based on the Company's inability to find an
acceptable long-term financing solution, Vitol Anker has decided to
pursue an offer for the Company. To that end, Vitol has held
discussions with Sterling's board of directors (the "Sterling Board") with a view to secure a board-supported transaction but these
discussions have, to date, not led to an agreement. Given continuing
rumours and uncertainty around the Company and its financial situation,
Vitol Anker has made the decision to disclose its intentions.
Compelling Offer to Sterling Shareholders
The price to be paid in the Offer represents an attractive premium of:
79% to Sterling's closing price on February 12, 2013, the last business
day prior to this announcement; and
48% to Sterling's 20-day volume-weighted average price as at February
The cash price to be paid in the Offer provides Sterling's shareholders
with certainty of value and immediate liquidity.
The Offer removes the risk to shareholders from Sterling's near-term and
long-term need for significant capital expenditures, which could result
in numerous, potentially dilutive and uncertain financings to bring the
Company's projects to completion. Vitol Anker is prepared to
immediately enter into further discussions with the Company to provide
additional interim financing for the period whilst the Offer is
Additional Information to the Offer
Vitol Anker has received support for the Offer from Sprott Asset
Management LP ("Sprott"), which holds approximately 9.9% of the Shares. Sprott and Vitol Anker
have entered into a lock-up agreement under which Sprott has agreed to
tender its Shares to the Offer, subject to certain conditions.
The Offer will be subject to usual and customary conditions such as
confirmatory due diligence including an assessment of the current
liquidity position of the Company, receipt of all required approvals
and consents, and that not less than that number of Shares, which
together with the Shares directly or indirectly owned by Vitol Anker or
its affiliates, constitutes at least 66 2/3% of the Shares be deposited
under the Offer and not withdrawn. The Offer constitutes an "insider
bid" under applicable securities legislation, which requires, among
other things, that a formal valuation be prepared under the supervision
of the Sterling Board. The Offer will commence by way of a formal offer
and take-over bid circular to be mailed to shareholders as soon as
Vitol Anker receives such formal valuation. Vitol Anker looks forward
to Sterling's co-operation with the timely preparation of the formal
valuation to allow shareholders of Sterling to realize immediate value
and liquidity from the Offer.
The Offer will be made by Vitol Anker which, along with its affiliates,
currently holds approximately 14.0% of the Shares. Further details concerning the Offer will be included in the formal
offer and take-over bid circular. The Offer will be open for acceptance
for at least 35 days following the commencement of the Offer, subject
to Vitol Anker's right to extend and vary the Offer as permitted under
applicable securities legislation.
Vitol Anker has retained Credit Suisse Securities (Europe), Ltd. as its
financial advisor and Norton Rose Canada LLP as its legal advisor.
About The Vitol Group
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since
then the company has grown significantly to become a major participant
in world energy markets and is now the world's largest independent
energy trader. Its trading portfolio includes crude oil, oil products,
LPG, LNG, natural gas, coal, power, metals and carbon emissions. The
Vitol Group trades with all the major national oil companies, the
integrated oil majors and the independent refiners and traders.
Further details on The Vitol Group are available on www.vitol.com.
Press Release for Informational Purposes Only
This press release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to sell any
securities. The solicitation and the offer to buy the shares will be
made only pursuant to the separate formal offer and take-over bid
circular and other related documents.
Forward-Looking Statements and Information
This news release contains "forward-looking statements" and
"forward-looking information", which may not be based on historical
facts. Forward-looking statements and forward-looking information,
include, but are not limited to, information and statements with
respect to the Offer or the business, operations and financial
condition of Sterling. Forward-looking statements are frequently
characterized by words such as "plan," "expect," "project," "intend,"
"believe," "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
The Vitol Group at the date the statements are made. Such
forward-looking statements and forward-looking information involve
known and unknown risks, uncertainties and other factors that may cause
the actual results events or developments to be materially different
from any future results, events or developments expressed or implied by
such forward-looking statements or forward-looking information. These
factors should be considered carefully and readers are cautioned not to
place undue reliance on such forward-looking statements and
forward-looking information. Except as required by applicable
securities laws, Vitol Anker disclaims any obligation to update any
such factors or to publicly announce the results of any revisions to
any of the forward-looking statements or forward-looking information
contained herein to reflect future results, events or developments.
(all amounts are in Canadian dollars unless otherwise indicated)
SOURCE: The Vitol Group