Beijing's Aluminum Corporation of China has offered $840 million to acquire Vancouver-based Peru Copper Inc. (TSX:PCR).
As part of the proposal from the diversified metals and mining company, Peru Copper shareholders would receive $6.60 per share in cash. The friendly takeover bid would give shareholders a 21% premium over Peru Copper's 20-day volume weighted average trading price of $5.45 on the TSX.
About 34% of existing shareholders have submitted their shares to the deal, which is subject to both companies signing a support agreement and receiving shareholder and regulatory approval.
Peru Copper's main asset is its Toromocho Project in central Peru. To ensure the company has sufficient funds to continue working on the project, Aluminum Corporation has agreed to invest $70 million into Peru Copper by buying 13.2 million Peru Copper shares at $5.30 per share prior to the deal being concluded.
Following Aluminum Corp.'s private placement, the company will own about 9.9% of Peru Copper shares.
Peru Copper's share price range during the past week: between $5.74 and $6.35; 52-week high: 7.52; 52-week low: $3.65.