First Quantum ready to take over Inmet and create one of world’s biggest copper producer

First Quantum Minerals (TSX:FM)(LON:FQM) is set to take control of fellow Canadian miner Inmet Mining Corp. (TSX:IMN) after announcing it was changing the terms of its hostile $5.1 billion takeover and extending the deadline by 10 days.

In a statement late Tuesday, Vancouver-based First Quantum said it has received strong endorsement from its smaller rival’s shareholders, as the majority of them tendered shares in favour of the offer, which was designed to create one of the world’s leading copper producers.

Earlier this year, Inmet’s board rejected a hostile takeover offer of Cdn$72 per share from First Quantum, claiming the bid was “financially inadequate” and would deprive its shareholders of the benefits expected from Cobre Panama, Inmet’s $6.2 billion copper and gold project in the Central American country.

But First Quantum said it modified the takeover proposal to allow the minimum tender condition to be satisfied if more than 50% of Inmet’s outstanding shares have been deposited before the new deadline. The cash-and-stock offer was previously contingent on more than two-thirds of the shares being tendered in favour of the deal.

Under Canadian law, First Quantum needed to extend the offer period after adjusting the terms of the offer, which is now due to expire at midnight on March 21.

Financial Post’s Peter Koven believes the company played its hand perfectly, while Inmet made “a key strategic error.”

“As a result, First Quantum is on the verge of completing a hostile takeover for less money than almost anyone expected,” he writes.

The Vancouver-based miner holds extensive copper, nickel and gold assets throughout Africa and Australia, while Inmet mines copper and zinc in Turkey, Spain and Finland.

If the two companies combined, the entity would have a projected output of 1.3 million tonnes per year by 2018.

(Image courtesy of Kitchen Mischief)

133 0
Latest Stories

MSHA honours Massey operations for safety achievements

The Mine Safety and Health Administration (MSHA) in the USA has selected the Green Valley Preparation Plant and two mines operated by the Aracoma Coal Co to receive Pacesetter Awards for outstanding safety achievements. Green Valley and Aracoma are operating units of Massey Energy Co. The awards to the Green Valley plant and Aracoma’s Alma and Hernshaw mines honour operations [...]

Eyes on Indian Underground

increasing demand for coal. Industry observers believe that India is poised to become a major market for mining equipment, even larger than China, and this opportunity has led several global mining companies to open up shop in the country at least four


Bateman makes major acquisitions in mineral processing

As IM May is prepared for printing, with an article on developments in mineral processing, comes dramatic news from Bateman. The company has recently acquired the mining-process division of Intertech, with a strong market presence in the CIS. Even more significant, Bateman’s latest acquisition, announced as IM goes to press, is that of the Delkor [...]