American Resources Rejects $260M Unsolicited Bid For American Carbon
Portfolio Pulse from Akanksha Bakshi
American Resources Corp (NASDAQ:AREC) has rejected an unsolicited bid for the assets of its metallurgical carbon division, American Carbon. The bid, which included upfront cash, assumption of debt, and a scaling royalty structure, totaled an implied enterprise value of ~$260 million. The company did not accept the proposal due to the duration and structure of the consideration payments.
June 28, 2023 | 2:03 pm
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American Resources Corp rejected a $260M bid for its metallurgical carbon division, which could indicate confidence in the future performance of this division. The company's shares are trading slightly higher.
The rejection of the bid indicates that American Resources Corp sees more value in its metallurgical carbon division than the offered price. This could be a positive signal to investors, which might explain the slight increase in the company's share price.
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