Canadian mining company Pan American Silver Corp is nearing to acquire U.S.-based metals and mining company Tahoe Resources Inc in a $1 billion cash and stock deal.
Under the terms of the deal, Pan American will offer 0.2403 shares at $3.40 in cash which will give Pan American ownership of about three-fourths of the combined company and Tahoe the remainder. The conditional payment, the offer is worth $4.1 per share, a nearly 63 percent premium to Tahoe’s average share price over the last four weeks.
Pan American intends to pay a maximum of $275 million in cash and issue a maximum of 56 million shares of stock and will fund the deal using a portion of cash on hand and existing credit.
Shareholders are expected to vote on the deal in January, and regulatory approvals are required. The transaction is expected to close in the first quarter of 2019.