RE: RE: RE: A QuestionTouareg,
I think it goes without saying that at the right price a seller will become willing.
The problem is determining the "right" price. If the seller is not "willing to sell" then their price is more than likely going to be too high for the willing buyer to meet - due to many reasons including risk, access to financing, ability to make an acceptable return on the price requested, etc. If MAG is not interested in selling but determines that if they are somehow forced to sell (via pressure from their shareholders) and determines that they would want say $20/share. Fresnillo would need to crunch their numbers to determine if they can make an acceptable return on a purchase that in this imaginary case would require them to spend $1 billion up front.
With Fresnillo owning 56% of the project how is it possible for another interested party to make an offer?
-I think that you are confusing two different potential deals. Fresnillo has made an offer to buy MAG - not to buy out MAG's 44% interest in the JV company. There is no restriction against anybody from making an offer to purchase MAG in its entirety. If somebody was interested in just the Juanicipio property then they would approach either or both MAG and Fresnillo seperately, or the officers of the JV directly and make an offer. But, I doubt if MAG, Fresnillo, or the JV are willing sellers. There may also exist within the business charter of the JV a restriction in the ability for one of the JVs partners to sell their respective positions without the other partners knowledge or approval.
However, if we assume that the relationship within the JV deteriorates to a point where it becomes non-functional then the most likely candidate to look to exit the JV is MAG. If this occurred MAG would become a willing seller of their position within the JV and seek out a willing buyer. Lets say Goldcorp, Barrick, Silver Wheaton, or Newmont (I believe that Penoles and or Fresnillo has existing deals with at least one of these large mining companies) are interested and make an offer that is acceptable to MAG for their interest in the JV. Depending on the JVs business articles, MAG would then advise their JV partner of their intereset in selling and more than likely allow Fresnillo to match or better the offer. I think that you can safely assume that Fresnillo has zero interest in selling their position unless Fresnillo's major shareholder (Penoles - 77%) invokes a major change in business strategy.
Hope this helps.