Vancouver-based First Quantum Minerals Ltd. (TSX:FM) has announced plans to acquire Toronto's Scandinavian Minerals (TSX:SGL) through a wholly owned First Quantum subsidiary in a deal worth an estimated $281 million.
As part of an agreement between the two companies, each outstanding Scandinavian common share would be acquired for $9 in cash, plus 0.01 common shares of First Quantum. The deal represents a 41.3% premium, based on Scandinavian's April 18 closing share price.
Scandinavian's board of directors has unanimously approved the transaction and will recommend the deal to shareholders. The company's directors and senior officers have committed to vote their shares, which account for 13.6% of the common share total, in favour of the deal.
Scandinavian's main asset is the Kevitsa nickel-copper deposit in Finland.
First Quantum's share price range during the past week: between $89.36 and $93.90; 52-week high: $114.18; 52-week low: $65.82.