Minefinders investors will get 0.55 of a Pan American share and C$1.84 in cash, or 0.6235 of a share, or C$15.60 in cash, the companies, both based in Vancouver, said today in a joint statement. At C$15.60 a share, the offer represents a 36 percent premium to Minefinders’ closing price on Jan. 20.
“This acquisition is logical and consistent with Pan American’s vision to become the largest, low-cost primary producer of silver in the world,” Pan American Chief Executive Officer Geoff Burns said in the statement.
Minefinders directors and management holding 3.5 percent of the company’s shares have entered into voting agreements to support the deal, the companies said.
Shares of Minefinders rose 27 percent to C$14.59 as of 8:41 a.m. in Toronto.
Pan American’s financial adviser on the deal is CIBC World Markets Inc. Scotia Capital provided a fairness opinion to the company’s board of directors. Minefinders’ financial adviser is BMO Capital Markets.
To contact the reporter on this story: Liezel Hill in Toronto at firstname.lastname@example.org.
To contact the editor responsible for this story: Simon Casey at email@example.com.