TORONTO – HudBay Minerals Inc. (TSX:HBM) has extended its hostile takeover offer for Augusta Resource Corp. (TSX:AZC) by about two weeks until June 9, without making new changes to the terms of its proposal.
HudBay, which owns about a 16 per cent stake in the mining company, has offered 0.315 of a HudBay share. Based on Tuesday stock prices, that values each Augusta share at $3.25 and its total equity at $469.2 million.
HudBay shares closed down 27 cents at $10.31 on Tuesday, while Augusta closed at $3.06, down 15 cents for the day but up from $2.51 prior to the announcement of the takeover offer in early February.
It’s the latest extension by HudBay since the B.C. Securities Commission decided to allow Augusta’s shareholder rights plan to remain in place unless HudBay extends its offer to July 16.
If HudBay extends its offer to July 16, the rights plan will be blocked on July 15
Augusta adopted the defensive shareholder rights plan last year following HudBay’s acquisition of a large stake in the company. Augusta’s shareholders reaffirmed the plan at the company’s annual meeting earlier this month.