Base-metal producer Lundin Mining Corp. (TSX:LUN; AMEX:LMC) plans to acquire Vancouver's Tenke Mining Corp. (TSX:TNK) in an all-share deal worth roughly $1.4 billion.
Tenke shareholders will receive 1.73 Lundin common shares for each Tenke common share. The deal is worth $23.37 per share and represents a 31.2% premium over Tenke's 20-day volume-weighted average trading price.
Following the merger, Tenke shareholders will own roughly 27% of Lundin, which will have 389.9 million common shares trading on the TSX, AMEX and Stockholm stock exchanges.
The deal requires approval by two-thirds of Tenke's and 50.1% of Lundin's shareholders.
Shareholders are scheduled to vote in mid-June on the deal, which is expected to close by the end of June.
Tenke president and CEO Paul Conibear will join Lundin in a senior management position responsible for the development of Tenke's Fungurume project in the Republic of Congo.
GMP Securities LP is acting as financial adviser to Lundin Mining; McCullough O'Connor Irwin LLP and Blake, Cassels Graydon LLP are acting as Lundin's legal advisers. Dundee Securities is acting as financial adviser to Tenke Mining; Brock Blackwell LLP and DuMoulin Black LLP are acting as Tenke's legal advisers.
Lundin share price range during the past week: between $14.88 and $15.25; 52-week high: $15.84; 52-week low: $8.05.