Independence Group (ASX:IGO) will acquire Sirius Resources...

Independence Group (ASX:IGO) will acquire Sirius Resources (ASX:SIR) for $4.38 per share or A$1.8 billion in total by way of a scheme of arrangement.

Sirius last traded at $3.24. Sirius discovered the world class Nova-Bollinger nickel project in the Fraser Range of Western Australia.

The deal represents a large payday for largest shareholder of Sirius, Mark Creasy with his 34.5% shareholding. It is also a shot in the arm for Fraser Range explorers.

In exchange for their shares, Sirius shareholders will receive:

- 0.66 IGO shares for every one (1) Sirius share held;
- Cash consideration of 52 cents per Sirius share; and
- Circa one (1) S2 share for every 2.5 Sirius shares held.

S2 will hold the Polar Bear and Scandinavian asset portfolio currently owned by Sirius, plus approximately A$22 million cash upon listing.

Major shareholder, Mark Creasy supports the transaction, in the absence of a superior proposal.

Assuming the proposed transaction proceeds, the Creasy Group will control approximately 18.6% of IGO.