Canada’s Dundee Precious Metals (TSX: DPM) is acquiring UK-based Adriatic Metals (LON: ADT1) in a cash-and-stock deal worth $1.25 billion, marking the latest in a wave of foreign takeovers targeting British companies.
The deal gives Dundee control of Adriatic’s flagship Vareš silver-zinc mine in central Bosnia, along with the Raška zinc-silver project in Serbia. Already active in the Balkans, Dundee sees the new assets as a strategic fit that will expand its production pipeline and diversify cash flow.
“The Vareš is a logical fit with our portfolio, and adds near-term production growth and mine life, a highly prospective land package, and cash flow diversification,” chief executive officer David Rae said.
Adriatic shareholders will receive 268 pence per share, made up of 93 pence in cash and 0.1590 new Dundee shares. The offer represents a 50.5% premium to Adriatic’s closing price of 177.8 pence on May 19, the last trading day before it confirmed takeover talks with Dundee.
After completion of the transaction, Dundee shareholders will hold about 75.3% of the combined mining company, with Adriatic shareholders owning 24.7%. Dundee has secured voting support from Adriatic directors and major shareholders representing 37.2% of Adriatic’s shares.
Adriatic CEO Laura Tyler said Vareš remained on track to become a low-cost producer, supported by a high-grade deposit, long mine life and strong exploration upside. Tyler and chief financial officer Michael Horner will exit after the deal closes, and all Adriatic directors will step down.
Tyler and CFO Michael Horner will step down following the completion of the deal, with all Adriatic directors set to leave the board.
The merged company will keep its global headquarters in Toronto, while Adriatic’s UK office will shut down.
Adriatic shares surged on the news, trading 4% higher in London mid-afternoon at 250.5 pence each, lifting the company’s market value to nearly £862 million ($1.2 billion).
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Canada’s Dundee Precious Metals (TSX: DPM) is acquiring UK-based Adriatic Metals (LON: ADT1) in a cash-and-stock deal worth $1.25 billion, marking the latest in a wave of foreign takeovers targeting British companies.
The deal gives Dundee control of Adriatic’s flagship Vareš silver-zinc mine in central Bosnia, along with the Raška zinc-silver project in Serbia. Already active in the Balkans, Dundee sees the new assets as a strategic fit that will expand its production pipeline and diversify cash flow.
“The Vareš is a logical fit with our portfolio, and adds near-term production growth and mine life, a highly prospective land package, and cash flow diversification,” chief executive officer David Rae said.
Adriatic shareholders will receive 268 pence per share, made up of 93 pence in cash and 0.1590 new Dundee shares. The offer represents a 50.5% premium to Adriatic’s closing price of 177.8 pence on May 19, the last trading day before it confirmed takeover talks with Dundee.
After completion of the transaction, Dundee shareholders will hold about 75.3% of the combined mining company, with Adriatic shareholders owning 24.7%. Dundee has secured voting support from Adriatic directors and major shareholders representing 37.2% of Adriatic’s shares.
Adriatic CEO Laura Tyler said Vareš remained on track to become a low-cost producer, supported by a high-grade deposit, long mine life and strong exploration upside. Tyler and chief financial officer Michael Horner will exit after the deal closes, and all Adriatic directors will step down.
Tyler and CFO Michael Horner will step down following the completion of the deal, with all Adriatic directors set to leave the board.
The merged company will keep its global headquarters in Toronto, while Adriatic’s UK office will shut down.
Adriatic shares surged on the news, trading 4% higher in London mid-afternoon at 250.5 pence each, lifting the company’s market value to nearly £862 million ($1.2 billion).
The deal caps a week of intense dealmaking in London, reflecting growing foreign interest in UK-listed assets.