Vancouver (Reuters) - Shareholders of Canadian miner Quadra FNX QUX.TO approved a C$3 billion takeover offer from KGHM KGHM.WA on Monday, the tie-up is set to geographically diversify the Polish miner’s asset base and boost its copper output.
The friendly deal announced in December gives KGHM control of Quadra’s Sierra Gorda copper project in Chile, one of the world’s largest copper projects, along with other assets spread across Canada, Chile and the United States.
Preliminary results from a shareholder vote in Vancouver indicate that 78.6 percent of the votes cast were in favor of the deal. For KGHM’s bid to succeed, it required two-thirds support of the votes cast by Quadra shareholders.
Earlier this month, proxy advisory firm Institutional Shareholder Services (ISS) recommended that Quadra shareholders vote in favor of Polish miner’s bid. ISS advised its clients to support the bid for Vancouver-based Quadra, on the basis that “there have been no alternate offers and there are no governance concerns.”
Quadra shares closed Friday at C$14.92, just under KGHM’s all-cash offer price of C$15 a share, indicating that investors expected the bid to succeed.
Reporting by Nicole Mordant in Vancouver and Supantha Mukherjee in Bangalore; Editing by Sriraj Kalluvila