Summary
Freeport-McMoRan Copper & Gold Inc. (FCX) has announced an indirect acquisition of over 50% of Sociedad Minera Cerro Verde S.A.A. (SMCV), a Peruvian entity, following its acquisition of Phelps Dodge Corporation. This transaction triggers a tender offer requirement under Peruvian law for the minority interest in SMCV. FCX is launching a tender offer for 24.87% of the minority shares, which, after accounting for waivers, amounts to 6.94% (24.3 million shares). The offer price of $14.40 per share was set by an independent appraiser. Importantly, FCX anticipates that few, if any, shareholders will tender their shares, as the offer price is significantly below the recent market trading price of SMCV ($26-$30 per share). This tender offer is scheduled to remain open for 20 business days.
Key Highlights
- 1FCX indirectly acquired over 50% of Peruvian entity Sociedad Minera Cerro Verde S.A.A. (SMCV) as a result of the Phelps Dodge acquisition.
- 2Peruvian law mandates a tender offer for the minority interest in SMCV.
- 3FCX is launching a tender offer for 6.94% (24.3 million shares) of SMCV's minority interest.
- 4The tender offer price is set at $14.40 per share, determined by an independent appraiser.
- 5FCX expects minimal participation in the tender offer due to the offer price being substantially below SMCV's recent market trading range of $26-$30 per share.
- 6The tender offer period will last for 20 business days.
- 7This filing is an 8-K reporting other events.