Inmet recommends shareholders reject First Quantum’s C$5.1bn offer
TORONTO (miningweekly.com) – Base-metals miner Inmet Mining on Tuesday asked its shareholders to reject the C$5.1-billion hostile offer by larger base-metals miner First Quantum Minerals on the basis that the offer is inadequate.
Chairperson of the Inmet board David Beatty said the board had concluded that the First Quantum offer failed to adequately compensate shareholders for Inmet's low risk asset base and its strong prospects for growth and value creation at Cobre Panama, which has the potential to become one of the world's largest copper mines.
Inmet owns 80% of the Cobre Panama project, and a consortium of South Korean companies owns the balance.
“Cobre Panama is expected to drive a 176% increase in Inmet's copper production by 2018 and, as it moves closer to production, we believe our shareholders will benefit substantially from the commensurate increase in the company's valuation,” he said in a statement.
However, he added that the board was in discussions with third parties for alternative deals.
Inmet said it had entered into confidentiality and standstill agreements with a number of interested parties, several of which are examining confidential financial, operating and other relevant information. Discussions are ongoing with several of these third parties and others in order to generate value-enhancing alternatives.
Inmet has a market capitalisation of C$4.94-billion and its TSX-listed shares traded up half a per cent at C$71.31 apiece on Tuesday.
First Quantum has a market capitalisation of C$9.89-billion, and its shares traded down 2.58% at C$20.78 apiece on Tuesday.
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