Dynatec being taken out by Sherritt at 30% premium...
OTTAWA, April 20 (Reuters) - Sherritt International Corp. (S.TO: Quote, Profile , Research) said on Friday it plans to acquire Dynatec Corp. (DY.TO: Quote, Profile , Research) and bolster its nickel business in a friendly, all-stock deal the diversified Canadian miner values at C$1.6 billion ($1.4 billion).
"This is an important step in the growth strategy of our metals division, enabling us to become a premier, globally-diversified lateritic nickel producer based in Canada," Sherritt chief executive Jowdat Waheed said in a statement.
Under the proposed arrangement, Dynatec shareholders will get 0.190 of a Sherritt share and about 0.0635 of an FNX Mining Company (FNX.TO: Quote, Profile , Research) share, which are currently owned by Dynatec, for each Dynatec share.
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That values Dynatec shares at C$4.88 apiece, a 29-percent premium to Dynatec's closing price April 19, and 39-percent premium on the 20-day, volume-weighted average share prices for the three companies from that date, Sherritt said.
Shares in Dynatec jumped nearly 16 percent to C$4.36 on the Toronto Stock Exchange in opening trade as Sherritt stock dipped about 7 percent to C$15.98 and FNX shares gained 1.3 percent to C$25.79.
Sherritt, which has nickel, power and oil investments in Canada and Cuba, is after Dynatec's 45-percent stake in the Ambatovy nickel mine being developed in Madagascar.
The joint venture project, in which Sumitomo Corp. (8053.T: Quote, NEWS , Research) and Korea Resources Corp. each hold a 27.5 percent stake, is among the biggest nickel operations being developed in the world, Dynatec said. |
