The Tanzanian Fair Competition Commission (FCC) has granted unconditional merger control approval of SilverCorp Metals acquiring all fully paid ordinary shares of OreCorp.
Both companies have been in acquisition discussions since August 2023.
The first deal announced comprised Silvercorp and OreCorp signing a binding scheme implementation agreement where Silvercorp would acquire all fully paid ordinary shares of OreCorp not held by Silvercorp or its associates.
Under this agreement, OreCorp shareholders would have received $0.15 in cash and 0.0967 of a Silvercorp common share (valued at $0.45) for each OreCorp share held. This represented a total consideration with an implied value of $0.60 per OreCorp share. The FCC granted Silvercorp unconditional merger approval for this arrangement in early November 2023.
However, both companies agreed to terminate the previous scheme implementation deed in January 2024 and enter into a bid implementation deed.
This new – and current – agreement will see Silvercorp acquire all of the OreCorp shares it doesn’t currently own, with OreCorp shareholders to receive 0.0967 a Silvercorp share for each OreCorp share held, and $0.19 per share cash, four cents higher per share than the previous offer.
“OreCorp would like to thank the FCC for providing support throughout the expedited approval process,” OreCorp said.
“The company would also like to express its appreciation to the Honourable Minister for Minerals, Permanent Secretary for Minerals, Treasury Registrar and the Tanzanian Mining Commission, all of whom have expressed support to OreCorp and Silvercorp.”
Each OreCorp director has accepted the offer and continues to recommend that its shareholders accept the offer in the absence of a superior proposal, despite Perseus Mining submitting an unsolicited takeover bid of OreCorp two weeks ago after increasing its shareholding to 19.9 per cent.
The acquisition is expected to close on February 23, unless the deal is extended or withdrawn.