Alpayana, a private Peruvian mining company, has made a hostile C$179 million takeover bid for base metals company Sierra Metals, directly appealing to shareholders. Alpayana proposes a price of 85 per share, representing a 26% premium to Sierra's 30-day volume weighted average price. Sierra's board has formed a special committee to review the offer, advising shareholders to take no action. Alpayana's offer is considered 'opportunistic' and a 10% premium over Sierra's closing price on December 13.
A hostile C$179 million takeover bid for base metals company Sierra Metals is looming as private Peruvian company Alpayana directly appeals to shareholders. Alpayana said it intends to commence a direct to shareholder all-cash takeover at a price of 85 per share, which it says is a 26% premium to the 30-day volume weighted average price over the 30 trading days ended December 13.
Alpayana is appealing directly to Sierra shareholders due to what it says is the weak financial position of the publicly-listed company, with "liabilities, a working capital shortfall, a large asset base subject to potential impairments, and outsized corporate expenses relative to total assets and revenues" which it believes will require the company to seek additional funding that could be dilutive to shareholders.
Mining Takeover Mergers And Acquisitions Sierra Metals Alpayana
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Copper exploration round upHercules Metals, Faraday Copper, Abitibi Metals and Gladiator Metals
Read more »
London-listed news in briefGreatland Gold, Thor Energy, Panther Metals, Empire Metals, Brazilian Nickel
Read more »
London-listed news in briefCapital Metals, Metals Exploration, Condor Gold, East Star Resources, Castillo Copper
Read more »
Peruvian Congress removes mining minister amid protestsRómulo Mucho failed to address artisanal mining issues, congress said
Read more »
Fulcrum Metals Taps into Gold-Laden Tailings for ProfitFulcrum Metals believes it has found a unique money-making opportunity by extracting gold from tailings left over from the Teck-Hughes historic gold mine in Kirkland Lake, Ontario. The company, in collaboration with Extrakt and engineering partner Bechtel, is using sustainable technology to recover gold from the waste, with initial success achieving gold recovery rates up to 59%.
Read more »
More than $9B of metals deals agreed in Saudi ArabiaCompanies include Zijin, Vedanta, Hastings, Platinum Group
Read more »