Valora Analitik report: “Mineros’ Assembly Approved Share Repurchase Following Sun Valley Investments’ Proposal”
The shareholders of Mineros approved the share repurchase program proposed by Sun Valley Investments. What does this entail?
The General Shareholders’ Meeting of Mineros approved this Monday the share repurchase program proposed by Sun Valley Investments, now the company’s majority partner.
During the event, it was stated that the company may repurchase shares by decision of the Assembly, provided several conditions are met:
- That the resources used by the company to acquire shares come from liquid profits.
- That the repurchase of shares be carried out through mechanisms that ensure equal conditions for all shareholders.
- That the price be established based on a study conducted in accordance with technically recognized procedures.
“Considering Mineros’ liquid profits of US$86.5 million in 2024, allocated to reserves, it is proposed to transfer US$12 million to an occasional reserve for advancing a share repurchase program for the company; in accordance with Article 396 of the Commercial Code,” stated Sun Valley Investments’ proposal, which was approved this Monday by the Shareholders’ Assembly.
Following this, the program for Mineros’ share repurchase was approved, to be charged against and up to the amount of the occasional reserve. This would be carried out through one or more repurchase offers over a period of up to two years, starting from March 31, 2025.
This would be executed via transactional systems of the Colombian Stock Exchange (CSE) or an independent mechanism, as defined in the corresponding offer notice. This will only occur if mechanisms ensuring equal conditions for all shareholders are employed.
Additionally, authorization was granted to Mineros’ Board of Directors to define and issue regulations for the share repurchase program, ensuring compliance with applicable regulations.
How Much Did Sun Valley Pay in the Public Tender Offer (PTO) to Become Mineros’ Largest Shareholder?
The second PTO for Mineros, launched by Canadian fund Sun Valley Investments (led by investor Vikram Sodhi), yielded results exceeding market expectations.
In this offer, which concluded on March 18, it received acceptances equivalent to 39.68% of all outstanding shares of the company, despite the maximum expected percentage being 26% of Mineros.
Although it had the possibility of gaining greater control over the Antioquian mining company, Sun Valley adhered to what was agreed upon in the PTO and decided to retain a total participation of 56.85% in Mineros, making it its majority shareholder.
After closing the offer, the Canadian fund reported that the enhanced public offer, at a price of COP $5,500 per share (approximately $1.91 Canadian dollars), was successfully completed.
What Sun Valley Paid for 26% of Mineros: Investment Purposes
Sun Valley acquired a total of 77.93 million shares under the PTO for a total aggregate consideration of $428.624 billion pesos, equivalent to approximately $148.81 million Canadian dollars.
Immediately prior to the PTO, Sun Valley controlled 92.47 million shares, representing 30.85%. Now, as explained earlier, after completing the second offer, Sun Valley owns and controls 170.40 million shares of Mineros (56.85%).
Sun Valley stated in a press release that it “will maintain its ordinary shares for investment purposes. It will continuously evaluate its investment in Mineros and may increase or decrease its participation in Mineros or otherwise interact with the company in the future, subject to market conditions and other relevant factors.”
Read the original article in Valora Analitik published on March 31, 2025: Click here.