Zemex revises Inmet offer

Backed by an unnamed shareholder, Zemex (ZMX-N) has demanded a special meeting of shareholders to consider a revised bid for Inmet Mining (IMN-T).

Zemex’s new proposal to Inmet’s shareholders includes a cash distribution of $4.50 per share from Inmet’s treasury, then a consolidation of Inmet at a ratio of 26.45 to 1. Zemex would nominate a new board, and the new Inmet — the one without the cash — would be renamed Zemex Canada and merged, share-for-share, with Zemex.

Under the Canada Business Corporations Act, Inmet’s board must call the meeting by July 29 or Zemex and the other shareholder may call it unilaterally. Zemex is believed to hold about 4% of Inmet.

Zemex said its revised bid offered flexibility in the event that Inmet’s current deal to sell its 50% interest in the Antamina copper project in Peru did not close. Noranda (NOR-T) was to buy 37.5% and Teck (TEK-T) 25% of the project, in a deal with Inmet and partner Rio Algom (ROM-T) closing July 10.

A public offering of shares in German copper refinery Norddeutsche Affinerie, in which Inmet owned 25%, netted the company $155 million.

Combined with the money the company will likely receive for its half of Antamina, Inmet will have about $535 million in cash, or around $5.17 a share.

Inmet wasn’t the only company to lighten its load; partners MIM Holdings and Degussa also reduced their interests in the project. In all, more than 22.4 million shares — about 70% of NA — were sold, for proceeds of about $450 million.