After concluding an agreement with certain shareholders of Peruvian polymetallic miner Volcan Compañia Minera S.A.A., Glencore will acquire at least an additional 27% of the total class A common shares of Volcan for a total consideration of $531 million ($1.215/share).
Glencore has been a shareholder in Volcan since 2004 and currently holds 18% of the total class A common shares of Volcan and class B common shares reflecting an economic interest in Volcan of 7.68%.
To implement the acquisition, Glencore intends to make an offer to all of Volcan’s shareholders via a public tender offer or oferta pública de adquisición de acciones subject to the Peruvian laws and regulations. The offer will be for up to 48.19% of the total class A common shares of Volcan. Glencore expects to make the offer no later than October 27. The offer is expected to be complete in November or December.
Volcan’s operations are located in the richest polymetallic production area in Peru, producing some of the highest quality zinc concentrates. The transaction will provide an increase and extension of Glencore’s zinc production profile and the opportunity for synergies with Glencore’s existing Peruvian zinc operations.