As Featured in Halcones y Palomas: “The Moreno Echavarría Family Withdrew Their Takeover Bid for Mineros: Indian Investor Vikram Sodhi Wins His Bet”
“Halcones y Palomas” has recently highlighted us in an article. Translation by Sun Valley Investments.
Medellín – The firm Negocios y Representaciones requested that the Colombian Stock Exchange release the bank guarantee it had provided for the purposes of the Competing Public Tender Offer for the ordinary shares of Mineros S.A.(TSX: MSA) (CB: Mineros).
This means that the company owned by brothers Alonso and Octavio Moreno Echavarría, the second-largest shareholders of the mining company, is abandoning its attempt to acquire another significant controlling stake in the company.
Negocios y Representaciones requested that the Competing Takeover Bid be considered null due to the formulation of the Enhanced Competing Offer by Sun Valley Investments, led by Indian investor Vikram Sodhi.
Sun Valley raised its offer to 5,500 Colombian pesos per ordinary share in the initial bid and is now aiming to acquire another 27% of Mineros. The firm claims to have 428,624 million pesos available for the acquisition, which would result in securing a majority stake in the company.
SUN VALLEY’S ENHANCED TAKEOVER BID
Sun Valley Investments AG announced last Tuesday that it has improved the terms of its public offer to purchase ordinary shares of Mineros S.A. through a Public Tender Offer via the Colombian Stock Exchange. This offer was initially announced in its press release on February 14, 2025 (the Initial Offer).
Under the Enhanced Offer, Sun Valley will offer a price of 5,500 Colombian pesos (“COP”) per ordinary share, which is approximately CAD $1.92 as of the date of this press release. This represents an increase of 900 COP per ordinary share, equivalent to approximately CAD $0.34 per share as of the date of this press release, compared to the price offered in the Initial Offer.
Additionally, Sun Valley may acquire a minimum of one ordinary share and a maximum of 77,931,725 ordinary shares under the Enhanced Offer, representing approximately 26% of the issued and outstanding ordinary shares as of December 10, 2024. This also marks a 17% increase in the maximum number of issued and outstanding ordinary shares that Sun Valley can acquire under the Enhanced Offer, compared to the Initial Offer.
The total aggregate consideration that Sun Valley will pay for the Ordinary Shares under the Enhanced Offer will range from a minimum of COP 5,500, equivalent to approximately CAD $1.92 as of the date of this press release, to a maximum of COP 428,624,487,500, equivalent to approximately CAD $149,628,912 as of the date of this press release.
Immediately before the Enhanced Offer, Sun Valley owned and controlled 92,477,823 Ordinary Shares, representing 30.85% of the issued and outstanding Ordinary Shares. If the Enhanced Offer is successful, Sun Valley expects to acquire ownership and control of a minimum of one ordinary share and a maximum of 77,931,725 ordinary shares, unless the Enhanced Offer is modified in accordance with the terms outlined in the Offer Booklet.
As a result, and in the event that the Enhanced Offer is successful, Sun Valley expects to own and control a minimum of 92,477,824 Ordinary Shares and a maximum of 170,409,548 Ordinary Shares after the Enhanced Offer, representing approximately 30.85% and 56.85%, respectively, of the issued and outstanding Ordinary Shares as of December 10, 2024.
As of the date of this press release, Sun Valley’s stake in Ordinary Shares had a market value of COP $512 billion, equivalent to approximately CAD $181 million, based on the closing price of the Ordinary Shares on the Colombian Stock Exchange (bvc) on March 3, 2025, the last trading day before this press release.
If Sun Valley acquires the maximum number of Ordinary Shares it offers to purchase under the Enhanced Offer, the market value of its stake in Ordinary Shares would be approximately COP $944 billion, equivalent to approximately CAD $334 million, based on the Closing Price.
Read the original article in Spanish on Halcones y Palomas:
Original article by Halcones y Palomas published on March 5, 2025.