Appian Scores Hefty Returns on Brazilian Mine Sales

Oct 31, 2021 | News

Private equity firm Appian Capital Advisory is poised to generate a 60% internal rate of return from the sale of two Brazilian mining companies, benefiting from rising demand for metals used in electric-vehicle batteries, according to people familiar with the matter.

The firm is selling Atlantic Nickel and Mineração Vale Verde to South African metal producer Sibanye-Stillwater for a total of $1bn in upfront cash.

The successful restart of Atlantic Nickel and commissioning of MVV, combined with support from strong base metals markets, in particular nickel and copper for electric vehicles and decarbonisation, provides a logical time for Appian to exit the Assets.

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The Company considered a range of options, including listing the Assets, and the Transaction follows a competitive, multi-stage dual-track process with interest from a large number of groups globally looking to gain exposure to decarbonisation metals.

Sibanye was selected for the strength of its bid and focus on ESG, based on its alignment with Appian’s values and commitment to continued responsible stewardship of the Assets. The entire workforce of Atlantic Nickel and MVV, which Appian grew from around 50 to 3,387 employees, will transfer to Sibanye.

Citi and Standard Chartered acted as M&A financial advisors to Appian on the Transaction, with McCarthy Tetrault as legal advisors and Ernst & Young as tax advisor, with BMO and RBC acting as financial advisors around Equity Capital Markets options.

Michael W. Scherb, Founder and CEO of Appian, commented: “These exits – the fourth and fifth from Appian this year – further underline the strength of our unique operating model, with our ability to identify, acquire and develop projects effectively. Sibanye will be a great custodian for this asset base, and with our ongoing exposure I am confident that Atlantic Nickel and MVV will continue to deliver long-term value as well as taking care of its local communities and stakeholders. The transaction also highlights the strong and growing demand for decarbonisation commodities. Appian’s portfolio is ideally positioned for its next phase of growth with a major focus on the metals driving the critical global energy transition.”

Source: Wall Street Journal

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