Glencore has proposed to purchase all the outstanding shares of PolyMet that it does not own, for a cash consideration of $2.11 per share, which is around 167% premium to the last closing price of the PolyMet shares, of $0.79 per share
Glencore to buy remaining stake in PolyMet. (Credit: Анатолий Стафичук from Pixabay)
US-based copper ores company PolyMet Mining (PolyMet) has received a non-binding take-over proposal from Swiss commodity trading and mining company Glencore.
Glencore has proposed to purchase all the outstanding shares of PolyMet that it does not own, for a cash consideration of $2.11 per share.
The purchase price per share proposed by Glencore indicates around 167% premium to the last closing price of the PolyMet shares, of $0.79 per share, on 30 June 2023.
The Special Committee of the PolyMet Board of Directors is reviewing Glencore’s proposal, with respect to fiduciary duties, in consultation with independent financial and legal advisors.
The proposed acquisition is subject to certain conditions, including negotiation and execution of definitive agreement, and customary approvals.
PolyMet, in a statement, said: “PolyMet cautions its shareholders and others considering trading in its securities that no decisions have been made with respect to PolyMet’s response to the proposal.
“There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed or that this or any other transaction will be approved or consummated.
“PolyMet does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required by applicable law.”
Glencore said that the proposed purchase price is at par with PolyMet’s Rights Offering in April 2023.
The Swiss company currently holds 159,806,774 common shares of PolyMet, which accounts for nearly 82.19% of its total issued and outstanding common shares.
It also holds a purchase warrant, which enables it to purchase 811,190 Common Shares at an exercise price of $5.87 per common share.
If the 2019 Warrant is exercised, Glencore would hold a total of 160,617,964 common shares, representing nearly 82.26% of the issued and outstanding share capital.
Earlier this year, PolyMet formed the previously announced NewRange Copper Nickel joint venture (JV) with Teck Resources, in which PolyMet and Teck each hold a 50% stake.
The NorthMet and Mesaba deposits, which contain high-demand copper, nickel, cobalt and platinum group metals now come under the JV management.