Patronus Resources (ASX:PTN) Announces 9.66% Share Buyback
Patronus Resources Limited (ASX: PTN) has announced a selective buyback of 158,125,983 shares from St Barbara Limited (ASX: SBM). This transaction involves exchanging Patronus’ significant interest in Geopacific Resources Limited (ASX:GPR) for the returned shares, equating to a 9.66% concentration in the share register.
Strategic Transaction
The buyback is part of Patronus’ strategy to streamline its shareholding structure by removing a substantial overhang from the market. In return, Patronus will transfer 458,565,351 shares in GPR to St Barbara, facilitating St Barbara’s exit and enhancing the value proposition for Patronus shareholders.
Executive Comments
Managing Director John Ingram stated, “This transaction is unique in that it provides several benefits to all parties involved. Patronus shareholders share equally in the 9.66% concentration of the register and the removal of a potential substantial overhang in the market. Geopacific shareholders benefit from the addition of a significant PNG operator onto their register. And St Barbara shareholders benefit via exposure to an additional significant PNG project.”
Shareholder Approval
The transaction is subject to approval by Patronus shareholders. A general meeting will be convened to seek approval for the selective buyback through a Special Resolution.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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