Business
Offer for Equatorial Mining
Offer for Equatorial Mining.
About this update from Antofagasta Plc
[{"type":"text","content":"\n Antofagasta PLC\n15 August 2006\n\n\n\n ANTOFAGASTA PLC\n\n\nAntofagasta announces A$11.20 per share cash offer for Equatorial Mining Limited\n\n\n\nLONDON: 15 August 2006 - Antofagasta PLC ('Antofagasta') is pleased to announce\nit has entered into an agreement to acquire a 19.99 per cent. shareholding in\nEquatorial Mining Limited ('Equatorial') and has made a cash takeover offer of\nA$11.20 per share for all of the issued shares of Equatorial ('the Offer').\n\n\n\nEquatorial is listed on the Australian Stock Exchange and majority owned by AMP\nLife Limited ('AMP'), a major Australian financial institution. Equatorial's\nprincipal asset is its 39 per cent. ownership interest in the El Tesoro copper\nmine in Region II of Chile. Antofagasta owns the remaining 61 per cent.\ninterest in El Tesoro and has operated and managed the mine since development\nbegan in 1999. The acquisition of Equatorial would provide Antofagasta with\nfull ownership of El Tesoro and will consolidate its land position in the Sierra\nGorda district, where its other interests include the Esperanza project.\n\n\n\nThe Offer represents an attractive price to the shareholders of Equatorial and\nan opportunity for them to exit an illiquid investment with cash consideration.\nAntofagasta's cash takeover offer is more than 20% higher than the offer\nannounced by Quadra Mining Ltd ('Quadra') on 20 July 2006 and has considerably\nfewer conditions.\n\n\n\nThe Offer represents a premium of:\n\n• 21 per cent. to Quadra's offer of A$9.26 per share; and\n\n• 60 per cent. to Equatorial's share price on 19 July 2006, the closing\nprice on the last day prior to the announcement of Quadra's offer.\n\n\n\nAntofagasta has entered into an agreement with AMP to acquire a 19.99 per cent.\nshareholding in Equatorial at A$8.00 per share. Accordingly, the total\nconsideration payable by Antofagasta to acquire all of Equatorial's shares would\nbe approximately A$527 million (US$401 million). Equatorial reported cash\nbalances of A$127 million (US$97 million) as at 30 June 2006.\n\n\n\nMarcelo Awad, CEO of Antofagasta Minerals S.A., stated, 'We have enjoyed an\nexcellent working relationship with Equatorial Mining at El Tesoro since the\ninitial development of the mine in 1999. The acquisition of Equatorial will\ngive Antofagasta outright ownership of El Tesoro and increase ou...