Vancouver-based First Quantum Minerals Ltd. (TSX:FM, LSE:FQM) is dipping deeper into its pockets in its second attempt to acquire Toronto-based Inmet Mining Corp. (TSX:IMN).
In November, Inmet rejected an initial offer that valued Inmet shares at $70.
This morning, First Quantum mailed out a takeover bid circular to Inmet shareholders which values each share at $72, for a total company valuation of $5.1 billion.
First Quantum announced its plans to make the new bid in mid-December, when Inmet stock was trading below $70. Company stock has since risen to a high above $75. As of press time, company shares were trading at $72.51.
In pitching Inmet shareholders on the bid, First Quantum has argued that the takeover, along with First Quantum’s expertise, would “bring significant improvements to Inmet’s major project, Cobre Panama, for the benefit of all shareholders in the enlarged group.”
Inmet has not yet responded to First Quantum’s just-announced mailout to shareholders, though it responded to the mid-December announcement of the coming bid by advising shareholders to “take no action at this time.”
“The board of directors of Inmet, in accordance with its fiduciary duties and with counsel from its financial and legal advisers, will fulfill its legal responsibility and will evaluate any formal offer and will recommend a course of action that is in the best interests of Inmet and its stakeholders,” Inmet said at the time.
