(Updates with comment from CEO in third paragraph.)
Jan. 23 (Bloomberg) -- Pan American Silver Corp., a miner of the metal in Latin America, agreed to buy Minefinders Corp. for about C$1.5 billion ($1.49 billion) to expand production and add reserves in Mexico.
Minefinders investors will get 0.55 of a Pan American share and C$1.84 in cash, or 0.6235 of a share, or C$15.60 in cash, the companies, both based in Vancouver, said today in a joint statement. At C$15.60 a share, the offer represents a 36 percent premium to Minefinders’ closing price on Jan. 20.
“This acquisition is logical and consistent with Pan American’s vision to become the largest, low-cost primary producer of silver in the world,” Pan American Chief Executive Officer Geoff Burns said in the statement.
Minefinders owns the Dolores mine, which it plans to expand, and the La Bolsa project, both in Mexico. Pan American has seven silver mines in Peru, Mexico, Argentina and Bolivia.
Minefinders directors and management holding 3.5 percent of the company’s shares have entered into voting agreements to support the deal, the companies said.
Pan American’s financial adviser on the deal is CIBC World Markets Inc. Scotia Capital provided a fairness opinion to the company’s board of directors. Minefinders’ financial adviser is BMO Capital Markets.
--Editors: Simon Casey, Steven Frank
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To contact the editor responsible for this story: Simon Casey at email@example.com -0- Jan/23/2012 13:20 GMT