BRITISH COLUMBIA

First Quantum gets solid majority of Inmet stock by deadline for takeover offer

03/22/2013 08:22 EDT | Updated 05/22/2013 05:12 EDT
VANCOUVER - First Quantum Minerals Ltd. (TSX:FM) says 85.5 per cent of Inmet Mining's common stock was tendered to its $5.1-billion takeover offer by this week's deadline and the offer will remain open to the remaining shareholders until April 1.

Inmet shareholders had a choice of three options: $36 in cash and 1.6484 First Quantum common shares, or $40.60 cash and 1.4376 First Quantum common shares or 3.2967 common shares per Inmet share (TSX:IMN).

Based on First Quantum's closing stock price Thursday, the all-stock option would be worth $67.91 per Inmet share while the option with the most cash would be worth $70.21.

First Quantum says it will pay for the stock tendered by the March 21 deadline by March 27.

Under Canadian law, First Quantum would be able to ask regulators to force minority shareholders to sell their stock and take Inmet private if it can accumulate 90 per cent or more of the outstanding shares.

The Vancouver-based mining company says the combination of First Quantum and Inmet, which is developing a major mine in Panama, will create a leading copper producer operating in several regions of the world.

Inmet shares closed Thursday at $70.15 and First Quantum's closed at $20.60.