German metals giant Metallgesellschaft AG, has agreed to sell Toronto-based subsidiary Metall Mining (TSE) 75.6 million shares of Australian company M.I.M. Holdings in exchange for 13.1 million shares of Metall.
In a deal valued at $164.2 million, Metallgesellschaft is making the exchange on the basis of A$2.40 each for the M.I.M. ordinary shares and $12.50 for each Metall share.
Pending regulatory approval, Metall becomes M.I.M.’s second largest shareholder with 193.3 million shares representing 13.9% and secures Metall’s right to be represented on the M.I.M. board.
Under a previous reshuffling of assets, Metall had upped its stake in the diversified Australian company to 8.5% from 4%.
As a result of the latest transaction, Metallgesellschaft’s stake in Metall rises to 68.6% from 59.3%.
Metall, which is planning to develop four new projects in the next several years, expects the transaction to provide further opportunities for joint ventures with M.I.M.
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