By Lisa Kerner
Charlotte, N.C., June 11 - Peru Copper Inc.'s board unanimously approved the acquisition of the company by Aluminum Corp. of China for C$6.60 per share in cash in a deal that values Peru Copper at C$840 million.
The per-share offer price is a 21% premium to the company's volume-weighted average trading price of C$5.45 on the Toronto Stock Exchange for the 20 days ended May 23.
Chinalco plans to fund the transaction with cash on hand. The company will also provide an additional C$70 million by subscribing for 13.2 million Peru Copper shares at C$5.30 each in order to advance the company's Toromocho Project.
The agreement includes a C$21 million non-completion fee, and the transaction is expected to close upon approvals.
Peru Copper has received a fairness opinion from UBS Investment Bank.
"Since Nov. 2005, Peru Copper has been conducting a strategic review of the options available to the company to maximize the value of the Toromocho Project," Peru Copper chairman of the board J. David Lowell said in a company news release.
"We are delighted that a company of the financial and technical strength of Chinalco is going to take the Toromocho Project to the next stage of its development."
Peru Copper is a copper mining company based in Vancouver, B.C.
Aluminum Corp. of China, also known as Chinalco, is a diversified metals and mining company located in Beijing.
| Acquirer: | Aluminum Corp. of China
|
| Target: | Peru Copper Inc.
|
| Transaction value: | C$840 million
|
| Price per share: | C$6.60
|
| Announcement date: | June 11
|
| Non-completion fee: | C$21 million
|
| Expected closing: | Upon approvals
|
| Stock price for target: | Toronto: PCR.TO: C$6.35 on June 8
|
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