Sierra’s Bolivar mine in Mexico. Credit: Sierra Metals.
Peru’s Alpayana said it’s prepared to let its revised bid for Sierra Metals (TSX: SMT) expire in two weeks after the Canadian miner urged shareholders to turn down the takeover.
Toronto-based Sierra said Wednesday that its board had unanimously recommended shareholders reject Alpayana’s C$1.11 a share offer by not tendering their shares. It called the bid “opportunistic,” saying it undervalues the company and remains “significantly below” the valuations seen in comparable transactions. BMO Capital Markets, Sierra’s financial adviser, deemed the proposal to be “inadequate.”
Family-controlled Alpayana last week raised its unsolicited offer for Sierra by 31%, saying it was “uniquely positioned” to cut costs at the Canadian miner and “eliminate” its debt. Sierra – which operates two copper mines, Peru’s Yauricocha and…
