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BHP Billiton (NYSE: BHP Billiton) and Lundin Mining (OTCPK:LUNMF) said late Monday that they agreed to jointly acquire Canadian exploration company Filo (OTCQX:FLMMF) for about C$4.1B (US$2.96B), or about C$33 per share, to improve their performance. .
BHP Billiton (BHP) and Lundin (OTCPK:LUNMF) said they would pay approximately CAD$33 (US$24) per share for Filo (OTC ticker: FLMMF), a 12% premium to the company’s closing price in Toronto on Monday; Filo shareholders can choose cash, Lundin stock or a combination of the two, the companies said.
BHP Billiton (BHP) and Lundin (OTCPK:LUNMF) will form a 50:50 joint venture to hold the Filo del Sol copper-gold-silver project near the Argentina-Chile border and the nearby Josemaria copper-gold project, which is owned by Lundin. D; BHP Billiton will pay approximately US$690 million for half of the project.
Mike Henry, chief executive of BHP, said: “This transaction is consistent with BHP’s strategy of acquiring attractive early-stage copper projects and forming strategic partnerships with parties with complementary skills and experience. Bring long-term economic and social value.
Baden Moore, an analyst at CLSA, told Reuters that BHP has been “looking to improve its copper outlook”. “This deal demonstrates to BHP shareholders that BHP has other strategies to expand its copper business, although I don’t think it means they have definitively given up on Anglo American,” referring to the attempted takeover of Anglo American earlier this year. Resources Group’s US$50B takeover bid rejected.
