Teck Cominco Inc. (TSX:TCK.B) has offered $4.1 billion for Toronto-based copper producer Aur Resources Inc.
The acquisition would increase Teck's annual copper production by over 200 million pounds, or 43% of the company's current production.
It's projected that the deal would immediately increase Teck's cash flow and add to the company's long-term annual production. By 2010, Aur is expected to increase Teck's production by 72%.
Under the proposed acquisition, Aur shareholders would receive $30.75 per share in cash and 0.2187 of a Teck Cominco Class B share for each Aur common share for a total value of $41 per share. The offer represents a 29% premium to the 20-day volume weighted average closing price of Aur shares to June 29. Teck would pay up to $3.1 billion in cash and up to 22 million Class B shares to Aur shareholders.
The deal has won the unanimous OK of Aur shareholders, but awaits regulatory approval.
Teck will finance the deal with its significant cash holdings.
Teck's share price range during the past week: between $44.84 and $45.94; 52-week high: $50.01; 52-week low: $31.725.