Copper producer Metall Mining (TSE) is significantly reducing its stake in MIM Holdings of Australia.
The Toronto-based company is selling 100 million shares of MIM at A$2.35 per share, which will result in an after-tax gain for 1993 of $14 million. In addition, Metall will sell A$16.5 million ($14.6 million) call options involving 75 million shares of MIM.
Metall says it will use the proceeds to meet capital requirements and fund potential acquisitions.
It has sold, or issued options over, substantially all of its holdings of MIM shares. Metall will continue its relationship with the Australian miner through their joint-venture operations.
Meanwhile, Metall’s parent, Metallgesellschaft AG of Germany, is reducing its interest in Metall to 50.1% through the sale of 11.6 million shares at $10.75 each.
The sale by a group of underwriters will be by way of a prospectus offering. Metall’s parent will realize gross proceeds of $124.7 million.
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