TORONTO (miningweekly.com) – Base-metals miner First Quantum Minerals on Friday said it has received approval under the Investment Canada Act from the Minister of Industry and Minister of State for its C$5.1-billion hostile takeover offer of Inmet Mining.
"Approval under the Investment Canada Act was a condition of our offer, and we are pleased this condition has now been satisfied,” First Quantum chairperson Philip Pascall said.
Under the Investment Canada Act, foreign a company was required to prove to the Canadian government its investment would be of net benefit to the country. Vancouver-based First Quantum, however, was subject to approval under the Act, owing to most of its directors residing outside of the country.
First Quantum said its offer was open for acceptance until 23.59 (Eastern Daylight Time) on March 11, unless extended or withdrawn.
Meanwhile, Inmet on Friday again posted an open letter to its shareholders, recommending shareholders reject the offer, owing to the value of the First Quantum offer having declined to $67.70 as of Thursday’s closing price.
“In fact, the pro-rated value of the First Quantum offer has not met or exceeded $72 except on only four trading days out of 72,” Inmet said.
First Quantum in December raised its offer a third time to C$5.1-billion or C$72 a share.
Inmet said the average analyst target price for Inmet was about $79, while the analyst consensus net asset value estimate was about $84 and long-term views topped $93 a share.
“We continue to believe that the First Quantum offer does not adequately compensate Inmet shareholders for Inmet's low-cost producing assets and the value that Inmet shareholders will realise as Cobre Panama moves closer to production,” the company said.
Inmet said it was more interested in selling a minority stake in its new Cobre Panama copper project, in Panama, and was indeed involved with third-party discussions, which would provide immediate upside to de-risk the project.
Inmet added that its special committee and the board would be prepared to meet with First Quantum to discuss a supported transaction if First Quantum was prepared to make a fair offer to Inmet's shareholders.