Arizona Mining shares up on takeover offer by Australian company South32

VANCOUVER – Shares of Arizona Mining Inc. soared in early trading after the company announced a deal to be acquired by Australian company South32 Ltd. that valued the company at about $2.1 billion.

Under the deal, South32, which already holds a 17 per cent stake in the company, has agreed to pay $6.20 per share for the shares it does not already hold.

Shares in Arizona Mining were up $2.00 or about 48 per cent at $6.13 in trading on the Toronto Stock Exchange.

The deal requires approval by a two-thirds majority vote by shareholders including South32 and a simple majority of shareholders excluding South32.

The company says directors and officers of Arizona Mining, who own a 34 per cent stake in the company, entered into voting support agreements.

Arizona Mining owns the Hermosa base-metals project in southern Arizona.

Companies in this story: (TSX:AZ)