Arcon to merge with Lundin Mining
Exploration and mining group Arcon said today that agreement has been reached in principle on the terms of a merger with Lundin Mining.
To effect the proposed merger, Lundin Mining would make an offer, subject to an 80% minimum acceptance condition, for the entire issued share capital of Arcon in exchange for $63m (€47.9m) cash, currently equivalent to approximately €0.276 per Arcon ordinary share, and 5.6 million shares in Lundin Mining, currently equivalent to approximately €0.262 per Arcon ordinary share.
Based on the current issued share capital of both companies (undiluted) this would result in Arcon shareholders having an aggregate interest in Lundin Mining following the merger of approximately 14%.
Anthony O’Reilly, the principal shareholder in Arcon, has advised that an offer on these terms would be acceptable to him.
The combination will create a diversified European base metals producer with aggregate annual zinc production of approximately 152,000 tonnes and lead production of approximately 46,000 tonnes, as well as copper and silver production and a substantial exploration portfolio
The enlarged group expects to have combined pro-forma liquid investments of approximately $45m (€34.2m).
Arcon owns the Galmoy zinc and lead mine in Co Kilkenny.
