MANILA, Philippines--Philex Mining Corp., the country?s largest miner, is set to indirectly acquire all of the outstanding common shares of Toronto-based Philex Gold Inc. from minority shareholders for $0.75 apiece.
In a disclosure to the Philippine Stock Exchange, Philex Mining said Philex Gold was able to obtain an interim order from the Ontario Superior Court of Justice.
This order would authorize Philex Gold to hold a special meeting with its shareholders to consider the ?plan of arrangement? with Philex Mining and its wholly owned subsidiary Philex Gold Holdings Inc. (PGHI).
Philex Gold is also expected to send its shareholders a circular that will include the recommendation of the company?s board of directors based on the vote of shareholders regarding the plan of arrangement.
To make the transaction, or the plan of arrangement, final, at least two-thirds of shareholders of Philex Gold should vote in favor of the plan.
The plan of arrangement, which was disclosed last month, would allow Philex Mining?through its subsidiary PGHI?to acquire all the outstanding common shares of Philex Gold for a total of $77.7 million.
Following the completion of the transaction, Philex Gold will become a wholly owned subsidiary of PGHI.
As part of the transaction, Philex Gold has to transfer all of the shares of its local subsidiary Philex Gold Philippines Inc. to PGHI for CAN$82.4 million.
The amount would offset the outstanding obligations of Philex Gold to PGHI.