Base metals major Boliden (BOL-IR-T) has moved back the expiration date of its takeover bid of Westmin Resources (WMI-T) to January 21 from January 9.
In exchange for the bid extension, Westmin agreed to waive its shareholder rights plan and give Boliden access to its properties and confidential data.
Boliden expects to begin its review of Westmin’s data and properties shortly.
“This is a good development for Westmin shareholders,” said Westmin Chairman Terry Lyons, “because it gives the company the time it needs to maximize shareholder value.” The extension will also give potential buyers sufficient time to submit final proposals.
Boliden, 44.9%-owned by Sweden’s Trelleborg, has not changed its $593-million takeover bid.
The Toronto-based company is primarily interested in Westmin’s Lomas Bayas copper project in Chile and its Myra Falls copper-zinc mine in B.C. In December, Westmin’s board recommended that shareholders reject Boliden’s offer of $5.40 per share; the board is currently pursuing other bids.
“The current slump in the metal prices does not affect the long-term value of Westmn’s assets,” Lyons said, “and it would be unwise to value the company at a low point in a normal metal price cycle.”
At last report Boliden had acquired 3.3 million shares of Westmin and has secured another 5.5 million shares through a lock-up agreement with Altamira Management. This gives Boliden an effective 9.9% shareholding.
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