The Yauricocha polymetallic mine in Peru. Credit: Sierra Metals.
Canada’s Sierra Metals (TSX: SMT) agreed in principle to be taken over by Alpayana after the Peruvian miner sweetened its offer for a second time, tentatively putting an end to a four-month saga.
Alpayana will make an offer to buy all of Sierra’s common shares for C$1.15 apiece in cash, the Toronto-based company said Wednesday in a statement. That’s 3.6% more than the C$1.11 hostile bid that Sierra rejected earlier this month.
To give Sierra shareholders enough time to tender their shares, Alpayana has extended its existing takeover bid until 5 p.m. Toronto time on May 12.
Sierra shares soared 19% to C$1.08 in Toronto Wednesday morning, still shy of the revised offer price. That gave the company a market value of about C$230 million.
Family-owned Alpayana has been operating mines in Peru for over 38 years. The company, which has…
