Tata Chemicals acquires indirect stake in EPM Mining of US
27 May 2011
Tata Chemicals Ltd has acquired a 16 per cent indirect stake in EPM Mining Ventures Inc USA, in a deal involving acquiring of mining rights by Canadian company Yukon Inc (BidCo) in US potash lease acreage and its subsequent amalgamation into EPM Mining Ventures.
Valley Holdings LLC, USA, a wholly owned subsidiary of Tata Chemicals Ltd, acquired 16,677,612 common shares of EPM Mining Ventures Inc, representing 32.9 per cent of the issued and outstanding stock of the company on an undiluted basis and 15.9 per cent assuming conversion of non-voting shares into common stock on a one-to-one basis post amalgamation of BidCo.
The outstanding share capital of EPM consists of common shares and non-voting common shares, each of which is convertible into one common share subject to the terms and conditions thereof, Tata Chemicals said in stock market release.
VHI acquired the shares of EPM on completion of the amalgamation between EPM and Yukon Inc on 26 May 2011.
Prior to the amalgamation, VHI had acquired a total of 16,677,612 common shares of BidCo, at a price of $0.67, in cash per share. Pursuant to the amalgamation, each common share of BidCo was exchanged for one common share of EPM, on 26 May 2011.
Immediately prior to the amalgamation, VHI did not own or control any securities of EPM.
