First Majestic Silver Corp. (TSX: T.FR, Stock Forum) (NYSE: AG, Stock Forum) said it has been notified by Orko Silver Corp. (TSX: V.OK, Stock Forum) that Coeur d’Alene Mines Corp. (TSX: T.CDM, Stock Forum) (NYSE: CDE, Stock Forum) has made an acquisition proposal for all the issued and outstanding shares of Orko.
Orko has further advised First Majestic that the board of directors of Orko has determined that the Coeur proposal constitutes a “superior proposal” as defined in the arrangement agreement dated December 16, 2012 between First Majestic and Orko and that Orko intends (subject to First Majestic’s right to match the Coeur Proposal) to enter into an agreement with Coeur to implement the Coeur proposal.
Under an arrangement agreement, First Majestic has the right, for a period of five business days from receipt of Orko’s notice, to offer to amend the terms of the arrangement agreement.
In a press release, First Majestic said it is considering its position with respect to the Coeur Proposal and its matching right and will keep the market apprised of further developments.
On Thursday, First Majestic shares fell 2% to $17.80, leaving the company with a market cap of $2 billion, based on 116.7 million shares outstanding. The 52-week range is $24.18 and $12.26.
Coeur d’Alene, the biggest U.S.-based silver miner, is offering about $384 million, or $2.70 per Orko share.
On Thursday, Orko eased 0.77% to $2.58, leaving the company with a market cap of $365.2 million, based on 141.6 million shares outstanding. The 52-week range is $2.64 and $1.02.