The Sandfire Resources Ltd (ASX: SFR) share price has surged over the last 2 days after it announced the sale of its interest in Adriatic Metals Plc (ASX: ADT).
The sale of Sandfire’s 16% holding in Adriatic Metals brought in $97 million of aggregate proceeds.
The news sent the Sandfire share price 4% higher yesterday and it is still rising today.
At the time of writing, the Sandfire share price is $6.06. That’s 7.7% higher than it was at yesterday’s close and 12.2% higher than it was at Wednesday’s close.
Unfortunately, as The Motley Fool Australia reported yesterday, it hasn’t been such a pretty picture for Adriatic Metals.
The company didn’t see a scrap of the profits. Additionally, it had 16% of its capital sold at a 15.9% discount to its closing price on 12 October.
Let’s take a closer look at the most recent news from Sandfire Resources.
Sandfire share price soars amid investment sale
The Sandfire Resources share price is gaining for the second day in a row after it announced that it had sold around 34.6 million Adriatic Metals CHESS depository interests.
The CHESS depository interests represented ordinary shares. Sandfire sold each interest for $2.80.
The company appointed Canaccord Genuity Limited, RBC Europe Limited, and Stifel Nicolaus Europe Limited to be the sale’s bookrunners.
The sale was made to institutional investors and opened before the ASX did on Wednesday. It was finished before trade began on Thursday and is expected to be settled on 18 October.
Sandfire’s managing director and CEO Karl Simich, commented on the sale boosting the company’s share price this week, saying:
This has been an excellent investment for Sandfire. However, given that our focus is firmly now on the MATSA operation in Spain, which we see as the backbone of our company moving forward, together with our exciting development and growth assets in the Kalahari Copper Belt, our holding in Adriatic is no longer a strategic asset for the company.
The post Why has the Sandfire Resources (ASX:SFR) share price rallied 12% in 2 days? appeared first on The Motley Fool Australia.
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More reading
- Adriatic Metals (ASX:ADT) share price plunges 16% on Sandfire update
- Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
- Why is the Adriatic Metals (ASX:ADT) share price halted?
- Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
- Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?
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 Bruce Jackson.
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