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First Quantum Minerals attracts takeover interest: Bloomberg
Posted on Friday, 20 September 2019 09:02
Canadian mining and metals player First Quantum Minerals has received preliminary interest from prospective suitors, according to Bloomberg.

Citing people with knowledge of the matter, the news provider said the Toronto-listed firm is currently evaluating potential strategies and has appointed advisors to the process.

However, the sources, who did not wish to be identified as the matter is private, noted that no formal approaches have been received.

First Quantum has yet to comment on the report.

Bloomberg noted that the firm has lost half of its value over the course of the last five years.

First Quantum was incorporated in 1983 and describes itself as a leading and fast-growing copper company, as well as one of the top ten producers in the world.

The group’s assets and operations are spread across nine countries on five continents.

Based on First Quantum’s close of CAD 10.15 (USD 7.65) on 18th September, the last trading day prior to the Bloomberg report, the company can be valued at CAD 7.00 billion.

Following the news, stock finished the day up 10.3 per cent at CAD 11.20 on 19th September.

Both prices show there has been an improvement in the firm’s value in recent weeks; shares closed at CAD 7.89 on 27th August.

First Quantum posted gross profit of USD 381.00 million in the opening six months of 2019, down from USD 452.00 million over the corresponding timeframe in 2018.

If the company is acquired, it would not be the first provider of mining support activities to be targeted this year; according to Zephyr, the M&A database published by Bureau van Dijk, 1,390 such deals have been announced since the beginning of 2019.

The most valuable of these was worth USD 7.40 billion and saw senior noteholders of Dublin-headquartered Weatherford International convert their notes into an equity stake of 99.0 per cent in the business.

© Zephus Ltd