December 03, 2008

Milpo stresses own value in face of Votorantim offer

BNamericas reported that Peruvian zinc miner Milpo is urging shareholders to think twice about tendering their shares to a public offer from Brazilian owned Votorantim Metais.

Milpo in a statement sent to the Lima stock exchange said that Votorantim's offer to buy up to 147 million common shares in Milpo at USD 2.87 per share, would raise it's stake by 20.9% to control over 50% of the voting rights, adding its current share price is higher than the offer price.

Milpo asked shareholders to consider the performance of its mines and potential of its upcoming projects, as well as exploration programs, which reflect the growth and creation of value in the company, when deciding whether to tender their shares.

Milpo said that "The acceptance or not of the public offer is a decision for each shareholder to make to do that they must have all the necessary information. It is not up to the board to establish what the offer price should be; however, this report contains aspects that must be taken into account by shareholders to have a more complete idea of the situation."

The miner said it is prepared to sustainably achieve its goals of maximizing the value of the company for the benefit of shareholder and workers, and aims to become one of the biggest polymetallic producers in the world over the next five years.