Shares of Atlas Metals Group plc (LSE:ATLM) skyrocketed 284% in London trading following the announcement of a conditional Share Purchase Agreement to acquire Universal Pozzolanic Silica Alumina Ltd (UPSA), in a deal valued at £1 billion.
The transaction would represent a reverse takeover under UK Listing Rules, leaving Atlas shareholders with just 3% of the enlarged entity, while UPSA shareholders would control the remaining 97%.
UPSA holds one of the largest global reserves of pozzolanic silica alumina (PSA), a key ingredient in green concrete that reduces the carbon footprint of construction activities. According to Atlas, concrete production accounts for roughly 8% of worldwide CO₂ emissions.
A Competent Person’s Report by SLR Consulting confirmed substantial inferred resources at UPSA’s Warialda Quarry in Australia, totaling 160.68 million tonnes and carrying a Net Present Value of A$3.3 billion (£1.62 billion) over 25 years.
Chris Chadwick, CEO of Atlas Metals Group plc, commented:
“We are delighted to have signed the conditional share purchase agreement to acquire UPSA. This transaction is anticipated to transform Atlas in the near term into a £1 billion plus market cap company, delivering substantial value for Atlas shareholders and a unique proposition on the London Stock Exchange. UPSA provides an opportunity to access a world-class PSA reserve at an attractive valuation. Given the positive environmental impact UPSA provides the international construction industry, the UPSA resources are already attracting interest from major cement and concrete players and will be targeted for use in private and government infrastructure development projects globally. We look forward to completing the transaction as soon as possible.”
The deal remains conditional on satisfactory due diligence, regulatory approval, and shareholder consent.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply