Company News

Pala Investments boosts cash part of Cobalt 27 deal

Oct 1 (Reuters) - Cobalt 27 Capital on Tuesday said Pala Investments raised the cash portion of its deal to buy the Canadian cobalt miner, boosting overall transaction value to C$506.2 million ($382.79 million).

Pala raised the cash consideration to C$4.00 per share from C$3.57 per share, fetching Cobalt 27 an added C$30 million.

Privately held investment firm Pala’s deal now values the company at C$5.92 per share compared to the earlier offer for C$5.75 per share.

Cobalt has been in heavy demand as the metal is a key component for batteries used in electric vehicles.

Shareholder Anson Funds, which had not disclosed its stake in Cobalt 27, had earlier opposed the deal stating it ‘undervalued’ the company.

$1 = 1.3224 Canadian dollars Reporting by Taru Jain in Bengaluru; Editing by Shailesh Kuber