Vancouver-based Quadra FNX Mining Ltd. (TSX:QUX) announced yesterday it has agreed to a buyout from Poland’s KGHM Polska Miedz S.A. for $3.5 billion.
KGHM is listed on the Warsaw Stock Exchange with a market capitalization of approximately US$8 billion. It is the world’s ninth largest producer of copper and third largest producer of silver.
Under the arrangement, Quadra FNX shareholders will receive $15 in cash for each common share of Quadra FNX – a 41.3% premium on the 20-day volume weighted average on the TSX as of December 5.
KGHM plans to finance the acquisition with cash on hand. Paul Blythe, president and CEO of Quadra FNX, said, “KGHM participated in the process Quadra FNX ran to identify a joint venture partner for Sierra Gorda earlier this year.
“This proposal represents a significant premium to the current share price, and we are recommending that our security holders vote in favour of the transaction.”
Quadra’s stock closed at $15.88 on the day yesterday – up $4.53 (40%) on the day.
Jennifer Harrison
@JHarrisonBIV