After receiving approval from a majority of its shareholders, Sierra Rutile (SRX) last week accepted a 36p-a-share all-cash offer from Australian mineral sands giant Iluka Resources (ASX: ILU), despite the deal coming in at a slight discount to recent highs in the stock. Prior to receiving the offer, the high-grade white pigment titanium dioxide miner had started to shake the largely unwarranted discount first applied to its shares in the wake of the Ebola outbreak that gripped West Africa and its home state of Sierra Leone in 2014.
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Analysts said the takeover have been made in anticipation of a supply deficit of high-quality titanium dioxide feedstock, and ahead of an upswing in prices.
