Consolidated Thompson Mines (TSE:CLM) announced that it is going to be acquired by Cliffs Natural Resources (NYSE:CLF).
Consolidated Thompson Mines (TSX:CLM) announced that it is going to be acquired by Cliffs Natural Resources (NYSE:CLF).
The press release is quoted as saying:
Consolidated Thompson Iron Mines Limited today announced that it has entered into a definitive agreement pursuant to which Cliffs Natural Resources Inc. will acquire all the outstanding common shares of CLM by way of a plan of arrangement for C$17.25 per share in cash, valuing the Corporation at approximately C$4.9 billion. The cash consideration of C$17.25 per share to be received by shareholders represents an implied premium of 30% to both CLM’s closing share price of C$13.22 and 20-day volume weighted average trading price of C$13.23 on the Toronto Stock Exchange as at January 10, 2011. Cliffs has committed financing of US$4.0 billion and available liquidity sufficient to fund the proposed transaction.
Hon. Brian V. Tobin, Executive Chairman, President and CEO of Consolidated Thompson Mines, said:
The success we have had is a testament to our partners, employees and management team and their endeavors to deliver superior shareholder value. We are delighted that a company of the financial and technical strength of Cliffs, with considerable nearby infrastructure and experience in the Labrador Trough, is going to take our world-class mine and projects to the next stage. The Board of Directors believes this is a very attractive transaction for our shareholders.”