Yauricocha copper mine. Credit: Sierra Metals.
Peruvian miner Alpayana sweetened its hostile takeover bid for Sierra Metals (TSX: SMT) by 31% after the Canadian company rejected its initial salvo. The stock surged.
Alpayana is now offering C$1.11 for each Sierra share instead of the C$0.85 offer it made in December, according to a statement issued late Wednesday. The new bid, which values Sierra at about C$235 million, is valid until 5 p.m. Toronto time on April 25. Alpayana called the revised price “best and final.”
Family-owned Alpayana has been operating mines in Peru for over 38 years. The company, which has no debt and more than $500 million in annual revenue, says it’s “uniquely positioned” to cut costs at Sierra and “eliminate” its debt, which stood at $96.3 million as of Dec. 31, up from $78.5 million a year earlier. Alpayana’s controlling shareholders are minority investors…
