UPDATE 1-Teck to buy Global Copper for its Chile deposit
Mon Apr 14, 2008 9:14am EDT
reuters.com
(Adds details. In U.S. dollars unless noted)
TORONTO, April 14 (Reuters) - Teck Cominco Ltd (TCKb.TO: Quote, Profile, Research) will acquire Global Copper Corp (GLQ.TO: Quote, Profile, Research) in order to gain its Relincho copper-molybdenum deposit in Chile, which the deal values at about $415 million, the Canadian companies said on Monday.
The addition of Relincho to Teck's portfolio will add about 25 percent to the miner's measured and indicated copper resources, its chief executive said in a statement.
Under the deal, Global shareholders will receive C$12 or 0.26667 of a Teck Class B subordinate voting share per Global common share, subject to pro-ration. They will also receive one share of the new company, to be called Lumina Copper Corp.
Teck will absorb Relincho, while Lumina will hold all of Global's other assets, including properties in Argentina.
Excluding the value of Lumina shares to be received by Global shareholders, the offer represents a 29 percent premium to Global's 20-day volume weighted average, the companies said.
In total, Teck, the copper and zinc major, expects to issue about 6.9 million shares and pay about $104 million in cash.
The terms of the acquisition require Teck to pay an additional consideration of cash or shares if its stock price is less than C$45 at closing. If the stock is more than C$55 at closing, Teck will reduce the number of shares to be issued.
Teck stock closed last week at C$46.61 on the Toronto Stock Exchange.
($1=$1.02 Canadian) (Reporting by Jonathan Spicer; Editing by Bernadette Baum) |
