Russian nickel giant Norilsk Nickel (NILSY-O) has announced an offer for another 4.3 million shares of palladium-platinum producer Stillwater Mining (SWC-N).
The bid, which expires August 19, allows minority shareholders of Stillwater to tender for US$7.50 in cash. If the full amount of shares is tendered, Norilsk will own a 56% interest in Stillwater.
Norilsk, through a wholly-owned subsidiary, Norimet, already owns 51% of Stillwater, which it acquired in a cash deal in June. The share purchase gave Stillwater an infusion of US$100 million in cash plus US$157 million in palladium metal (877,000 oz.). Most of the cash was applied to existing debt.
The new offer fulfils a condition of the agreement under which Norilsk was obliged to bid for an additional 4.3 million shares if Stillwater shares traded below US$7.50 for at least 15 days following the share issue.
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