The decision to demerge Deterra followed a review of Iluka’s most appropriate corporate and capital structure for its two principal businesses, the mineral sands operations and the royalty business.
Delivering Great Value
After considering the advantages, disadvantages and risks of the Demerger, including a thorough assessment of the alternatives available, the Iluka Board concluded the Demerger was in the best interests of Iluka Shareholders and is more likely, over time, to deliver greater value than the current structure to Iluka Shareholders.
The Iluka Board believes that Iluka’s royalty business and the mineral sands business have distinct business and risk profiles that require different business strategies and plans and appeal to different types of investors. Deterra is also now of a scale where it is appropriate for it to be owned and operated separately.
The Demerger has resulted in the formation of an independent ASX listed company, Deterra, which is the leading Australian listed royalty company.
The outcome of the demerger process was to create a leading Australian ASX listed royalty company – Deterra, that owns a portfolio of six royalty assets including entitlement to all royalty earnings for the Post -Demerger Period.