TOKYO, Japan -- Japanese joint venture Pan Pacific Copper Co. Ltd. has offered $159 million to buy copper exploration firm Regalito Copper Corp. (TSX:RLO) in a friendly all-cash deal, sending the Canadian firm's stock up sharply.
The joint venture between Nippon Mining & Metals Co. Ltd. and Mitsui Mining & Smelting Co. Ltd. is offering $6 US per share for Regalito, about $6.96 Cdn, a 17 per cent premium over Regalito's Monday closing price.
''Pan Pacific is a fine company with extensive experience in Chile and is fully capable of developing Regalito into one of the world's premier copper leaching operations,'' Regalito chairman Ross Beaty said in a release.
The bid is subject to a minimum of two-thirds of shareholders tendering to the offer and is expected to close in May. Regalito's board has approved the transaction. Directors and major shareholders representing 42 per cent of the shares have agreed to tender to the offer. Regalito has agreed to pay Pan Pacific a break fee of $4.76 million if the deal is not completed.
