Fenix Resources Limited (ASX:FEX) signed an agreement to acquire Fenix Newhaul Pty Ltd from Newhaul Pty Ltd for AUD 34.5 million on June 21, 2022. The Transaction consideration comprises: Upfront payment of AUD 16.5 million in cash and equity, including:
AUD 7.5 million in cash consideration to be paid on completion; and 30,000,000 Fenix ordinary shares issued to Newhaul and valued at AUD 9 million based on the last closing price for Fenix shares of AUD 0.30; Up to 60 million Shares in Contingent Milestone Payments to be issued upon the achievement of significant milestones linked directly to value creation for Fenix. Pre transaction Fenix held 50% shares and post transaction it will hold 100% shares of Fenix Newhaul. Craig Mitchell, the founder of Newhaul, is expected to join the Board of Fenix in due course as a Non-Executive Director. Fenix will retain the services of Newhaul's accomplished corporate team and benefit from the efficiencies of Newhaul's systems and market leading processes for at least twelve months by way of a management services agreement. The Transaction is immediately value accretive to Fenix shareholders both in terms of Earnings per Share (EPS) and Dividends per Share (DPS).