Pan American Silver agrees to buy MAG Silver for about $2.1bn

MAG holders will receive the equivalent of $20.54 a share, paid as $500m of cash in total plus 0.755 Pan American shares per MAG share. The prize is MAG’s 44% stake in Juanicipio in Mexico, a high-grade silver mine operated by Fresnillo. Pan American shares fell sharply on the news.

Why it matters. Buying a minority stake in a mine run by someone else gives cash flow but no control over operations.

Source

MINING.COM

In the course

Module 9: The M&A process