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Boliden to buy Nexa stake for $1.3 billion in shares
The deal values the controlling 65% stake at about $15.29 per Nexa share and includes a follow-on tender offer for the remaining 35%.
Sweden’s Boliden agreed to buy Brazilian conglomerate Votorantim’s controlling stake in Nexa Resources for $1.3 billion in shares, expanding Boliden’s base metals and precious metals presence in Latin America, Mining.com reported.
Boliden will acquire Votorantim’s 65% of Nexa by issuing 0.25 of a Boliden share for each Nexa share, implying a price of $15.29 per Nexa share. After the transaction closes, Boliden plans to launch a cash tender offer for the remaining 35% within 30 days, or 60 days in some circumstances, with the tender price set using the same exchange ratio and Boliden’s 20-day average share price before closing.
Boliden said the acquisition would reinforce its position as a globally important base metals producer and add to its precious metal business, particularly by increasing silver in concentrate output. It also cited the combined project portfolio as a foundation for future growth.
BMO Capital Markets estimates Nexa would add about 240,000 tonnes of attributable mined zinc, 18,000 tonnes of copper, and 7 million oz. of silver to Boliden in 2027. Boliden estimates the transaction would immediately lift earnings per share by more than 8%, and it expects net debt-to-equity to rise to about 33% after closing, based on the companies’ figures for the 12 months ended June 30.
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