Bloomberg Covers the Latest on Our Strategic Moves: “Indian Investor Launches New Tender Offer for Mineros: Seeks to Control 40%”
“Bloomberglinea.com” recently highlighted us in an article. Below is a translated version:
Vikram Sodhi, who already controls 31% of the company, has launched a new offer to acquire an additional 9% of the Antioquia-based mining firm.
Bogotá — Vikram Sodhi, an Indian investor who became a Mineros shareholder in mid-2024, has launched a new Public Tender Offer aiming to increase his stake in Mineros to 40%.
Sun Valley Investments, the firm led by Vikram Sodhi, already owns 30.8% of Mineros’ shares. The first 25% was acquired in a private transaction with Mercantil Colpatria in April last year, followed by an additional 6% obtained through an initial tender offer. Now, the investor is launching another tender offer to purchase between 5% and 9% more.
On April 23, when Sun Valley’s entry as a Mineros investor was announced, the company’s shares on the Colombia Stock Exchange were trading at COP 3,250. Later, on October 16, when news of the Indian investor’s intention to increase his stake in Mineros emerged, the gold mining company’s shares were trading at COP 3,700 on the BVC.
The transaction is valued between COP 68.939 billion and COP 124.092 billion, depending on the percentage acquired from existing shareholders.
Although the proposed price for the transaction is higher than what was paid in the 2024 tender offer (COP 3,082), Corredores Davivienda has recommended against participating in the current tender offer. Among other reasons, this is due to the expected dividends that the mining company will distribute to its investors in 2025.
“In this regard, despite the price increase, our recommendation is not to participate in the tender offer, as the offered price (COP 4,600) is significantly below our fair value estimate (COP 6,000),” stated the brokerage firm.
According to the brokerage, the dividend to be decided at the March shareholders’ meeting is expected to be COP 500 per share, representing a dividend yield of 10.26%, once again making Mineros one of the highest-yielding companies in the Colombian market.
Vikram Sodhi is a private investor with approximately 20 years of experience in the investment sector.
Throughout his career, he has focused on investment strategies in leveraged buyouts, restructuring, and growth within the metallurgy and mining sectors, affordable housing, and financial technologies.
Vikram Sodhi is a partner, manager, and co-founder of Sun Valley Investments, a private investment firm specializing in metals and mining. He also serves as the Executive Chairman of Goldlogic Corp, a precious metals investment firm with a fast-growing model that finances producers and developers based on their refining needs.
Through this company, he provides initial financing for the working capital needs of precious metals producers. Together with its affiliates, the firm manages over USD 500 million in assets and invests in developers and producers of precious metals that are either in production or close to it.
Additionally, Vikram Sodhi has co-founded several private equity funds in the United States, Latin America, and India, overseeing more than USD 2 billion in transactions within metals, mining, and affordable housing, while raising over USD 1 billion in institutional capital from sovereign wealth funds, foundations, endowments, and insurance companies.
Vikram Sodhi studied at Yale University, where he received a full international scholarship and conducted neuroscience research at the School of Medicine. He is a member of Yale’s President’s Council on International Activities and a Sterling Fellow of the university.
Meanwhile, Sun Valley Investments is a private investment firm focused on the precious metals mining industry, with portfolio companies and subsidiaries in the Americas, Europe, and Asia.
The company provides financing across the entire precious metals supply chain, including mine exploration, mine construction, production, processing, and refining.
Read the original article in Spanish on Bloomberg Línea:
Original article by Daniel Guerrero published on Jan 27, 2025 in Bloomberg Línea.
Translation by: Sun Valley