Pan American Argent (PAAS) and Minefinders (MFL.TSX, AMEX: MFN) appear that they entered into a absolute acceding whereby Pan American will access Minefinders for C$15.60 per share, or about for C$1.5 billion. The action amount represents a 36% exceptional to aftermost Friday’s closing amount for MFL.TSX of C$11.50 per share.
Shares of MFL.TSX surged as abundant as 27.7% to C$14.86 this morning and remained college by 25.5% at C$14.43 in mid-day trading. PAAS, on the added hand, fell 7.8% to $22.80 per share.
The companies acclaimed that “Under the agreement of the Arrangement Agreement, Minefinders shareholders will be advantaged to accept to receive, in barter for anniversary Minefinders allotment held, either: (i) 0.55 shares of Pan American and $1.84 in cash; or (ii) 0.6235 shares of Pan American; or (iii) $15.60 in cash, accountable to pro-ration beneath absolute accumulated banknote and allotment pools of about $176 actor and about 53 actor Pan American shares, respectively, on a fully-diluted basis. Assuming abounding pro-ration, Minefinders shareholders will accept 0.55 shares of Pan American and $1.84 in banknote in barter for anniversary Minefinders allotment held…Upon achievement of the transaction, absolute Minefinders shareholders will own about 33% of Pan American on a fully-diluted basis.”
If accustomed by anniversary companies’ shareholders, the accord is accepted to abutting by the end of March 2012 and will actualize the “leading growth-oriented, geographically-diversified argent ambassador with accumulated bazaar assets of about $4 billion.”
Geoff Burns, President and CEO of Pan American Silver, commented that “Given the area of Minefinders’ assets, we accept this accretion is analytic and constant with Pan American’s eyes to become the largest, bargain primary ambassador of argent in the world. Argent assembly from Minefinders’ Dolores abundance has added about 200% over the aftermost year and we apprehend to see added increases into the future.