Jupiter Mines (ASX:JMS) - CEO, Priyank Thapliyal (left)
CEO, Priyank Thapliyal (left)
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  • Jupiter Mines’ (JMS) impending demerger and IPO of Juno Minerals has been blocked by the actions of a company shareholder
  • Stichting Pensioenfonds ABP has confirmed that it does not plan to meet the Foreign Investment Review Board’s regulatory requirements
  • By not meeting a condition of the in-specie distribution and capital reduction, ABP has effectively halted the demerger and IPO
  • This unexpected obstacle has forced the board’s of Jupiter Mines and Juno Minerals to reassess their options
  • Jupiter Mines is down 2.29 per cent and trading at 34 cents per share

Jupiter Mines’ (JMS) impending demerger and IPO of Juno Minerals has been blocked by the actions of a company shareholder.

On October 28, 2020, the company’s board approved the demerger subsequent initial public offering (IPO) of its Central Yilgarn iron ore assets. 

The proposed demerger would result in the formation of a new ASX-listed company called Juno Minerals, with a primary focus on progressing development of the Mount Mason DSO hematite project. The demerger would also allow Jupiter Mines to become a pure-play manganese company.

As part of the IPO, Juno Minerals planned to issue 120 million shares to Jupiter, in exchange for the Central Yilgarn iron ore assets and $5 million in seed capital. Juno also planned to make a public offer of up to 80 million shares to raise $20 million. 

The demerger and IPO received overwhelming support from many of company’s shareholders at a general meeting on February 19, 2021.

However, company shareholder Stichting Pensioenfonds ABP (ABP) has now confirmed that it does not plan to meet the regulatory requirements of the Foreign Investment Review Board (FIRB). By not meeting a condition of the in-specie distribution and capital reduction, ABP has effectively halted the demerger and IPO. 

Jupiter Mines’ CEO, Priyank Thapliyal, commented on the sudden and unexpected obstacle in the company’s demerger plans. 

“The IPO and the potential uplift that would have occurred with the construction of Mount Mason in the near term in this robust iron ore price market was the optimal structure to release substantial value for Jupiter shareholders,” he said.

“Needless to say, this has been usurped for all the shareholders by the decision of one shareholder, ABP,” he added.

In light of this development, the Jupiter Mines and Juno Minerals are now reassessing their future options.

Jupiter Mines is down 2.29 per cent, trading at 34 cents per share at 11:02 am AEDT.

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