Shareholders approve Pan American’s acquisition of Tahoe Resources

Vancouver-based Pan American will double its silver reserves and inherit Tahoe's troubled Guatemala mine

Shareholders of Pan American Silver Corp. and Tahoe Resources Inc. have green-lit Pan American’s $1.07-billion cash-and-stock offer to take over its rival.

The deal, which is awaiting regulatory approval, gives Pan American the largest share of silver reserves in the world. The Vancouver-based company will also inherit Tahoe’s troubled Escobal mine in Guatemala, which has been closed since July 2017.

Last week, activists filed complaints with the British Columbia Securities Commission (BCSC) and US Securities and Exchange Commission (SEC) against both companies, alleging Pan American and Tahoe have misled and misinformed investors about the conflicts surrounding the now-shuttered Escobal project.

Just over 95% of Tahoe shareholders voted in favour of the acquisition, which values each Tahoe share at USD $3.40, or about a quarter of a share in Pan American.

"We are very pleased to see strong shareholder support for our acquisition of Tahoe," stated Pan American president and CEO Michael Steinmann in a release.

At the time of writing, Tahoe shares were trading at $5.03 (CAD). Pan American stock is trading at $20.35.

hwoodin@biv.com
@hayleywoodin