Hudbay Minerals falls, Copper Mountain jumps after $439 mln deal

Copper Mountain Mining

13/04/2023 15:07

(Updates)
    ** Shares of Canadian miner Hudbay Minerals Inc  HBM.TO  fall 2.4% to C$6.84
    ** HBM says it will buy peer Copper Mountain Mining Corp  CMMC.TO  in a $439 mln all-share
deal to boost its copper portfolio
    ** Shares of Copper Mountain jump 14% to C$2.59, touching a 10-month high
    ** The combined company will create the third-largest copper producer in Canada and the deal
can unlock $30 mln per year in operating efficiencies and corporate synergies - HBM
    ** CMMC shareholders will receive 0.381 of a Hudbay common share for each CMMC common share
held
    ** Deal values CMMC at C$2.67/shr, which represents an 18% premium to its last close
    ** Upon deal closing, expected in Q2 or in early Q3 of 2023, existing HBM and CMMC
shareholders will own about 76% and 24% of HBM, respectively
    ** Accounting for session's losses, HBM stock flat YTD
    ** CMMC stock up 50% so far this year, accounting for session's gains

 (Reporting by Arshreet Singh in Bengaluru)
 ((Arshreet.Singh@thomsonreuters.com))