• Proposed merger with Advanced Innergy Solutions
• Matrix shareholders to hold ~20% of merged group
• Significant capital raising planned for merged group
• Matrix unable to comment on expected transaction value

Matrix Composites & Engineering Ltd (ASX: MCE) has provided a clarification regarding the conditional, non-binding indicative merger proposal from Advanced Innergy Solutions Limited (AIS). The company refers to its previous announcement, which mentioned a nearly 100% premium and an expected value on the company of close to $100 million. However, Matrix now states that the proposed transaction structure involves Matrix acquiring all of the issued shares in AIS in consideration for Matrix issuing new shares to the shareholders of AIS. As a result, Matrix shareholders will hold approximately 20% of the merged group, with AIS shareholders holding approximately 80% (pre-capital raising). The company also notes that AIS is proposing a significant capital raising of the merged group in connection with the transaction. Given the proposed transaction structure, Matrix advises that it is not in a position to comment on the expected value of the proposed transaction or any deemed premium attributable to Matrix, as the value will depend on the value of AIS, which is privately owned, and the value of the merged group. The Board of Matrix has advised shareholders to take no action in response to the proposal and that the company will keep shareholders informed about any potential developments.