Boliden has completed the acquisition of Somincor (Neves-Corvo) and Zinkgruvan

Rhea-AI Summary

Boliden has completed its acquisition of Somincor (copper and zinc mine in Portugal) and Zinkgruvan (zinc mine in Sweden) from Lundin Mining for USD 1.40 billion. The deal, announced on December 9, 2024, includes a base purchase price of USD 1.30 billion and potential contingent payments of up to USD 150 million tied to commodity prices and certain conditions.

The acquisition, effective April 16, 2025, will nearly double Boliden's zinc concentrate production and significantly boost its copper concentrate production, strengthening its position as Europe's leading base metals company. The transaction was financed through a bridge loan and a directed share issue that raised approximately SEK 3.75 billion. The bridge loan will be refinanced through a temporary deviation from Boliden's dividend policy and medium to long-term debt financing.

Positive

• Almost doubles zinc concentrate production capacity
• Significant increase in copper concentrate production
• Strengthens position as leading European base metals company
• Well-invested operations expected to contribute to immediate value creation

Negative

• Substantial debt financing required (USD 1.40 billion acquisition cost)
• Temporary deviation from dividend policy to refinance bridge loan
• Additional debt burden through medium and long-term financing
• Potential dilution from SEK 3.75 billion share issuance

News Market Reaction – BDNNY

-0.96%

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-0.96% News Effect

On the day this news was published, BDNNY declined 0.96%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

STOCKHOLM, April 16, 2025 /PRNewswire/ -- The acquisition of Somincor and Zinkgruvan is now complete and the companies will be consolidated into Boliden as of April 16, 2025.

On December 9, 2024, it was announced that Boliden had entered into an agreement with Lundin Mining to acquire the Somincor copper and zinc mine in Portugal and the Zinkgruvan zinc mine in Sweden. The cash consideration paid to the seller on April 16, 2025, amounted to USD 1.40 billion and consisted of a purchase price of USD 1.30 billion on a debt- and cash free enterprise value basis as of August 31, 2024 (locked-box date), adjusted for interest from the locked-box date and other customary adjustments. Future contingent payments of up to USD 150 million are tied to commodity prices and satisfaction of certain conditions as outlined in the press release dated December 9, 2024. The acquisition will almost double Boliden's zinc concentrate production and significantly strengthen its copper concentrate production.

"The acquisition consolidates Boliden's position as the leading base metals company in Europe. These well-invested operations will contribute to value creation within Boliden from the outset. Just like our existing mines, we will also work long-term to create further development opportunities, " says Mikael Staffas, President and CEO of Boliden.

The acquisition was financed through a bridge loan and a directed share issue that raised approximately SEK 3.75 billion for Boliden. The bridge loan will be refinanced through a temporary deviation from Boliden's dividend policy as proposed to the Annual General Meeting and through medium and long-term debt financing in line with what has previously been communicated.

For further information, please contact:

Klas Nilsson
Director Group Communications
+46 70 453 65 88
Klas.Nilsson@boliden.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/boliden/r/boliden-has-completed-the-acquisition-of-somincor--neves-corvo--and-zinkgruvan,c4136754

The following files are available for download:

https://mb.cision.com/Main/997/4136754/3394560.pdf

Press release

 

FAQ

How much did Boliden (BDNNY) pay for Somincor and Zinkgruvan mines?

Boliden paid USD 1.40 billion, with a base price of USD 1.30 billion plus adjustments, and potential additional payments of up to USD 150 million based on commodity prices and conditions.

How will the Somincor and Zinkgruvan acquisition impact BDNNY's production?

The acquisition will almost double Boliden's zinc concentrate production and significantly increase its copper concentrate production.

How is Boliden (BDNNY) financing the Somincor and Zinkgruvan acquisition?

The acquisition is financed through a bridge loan and a directed share issue of SEK 3.75 billion, with the bridge loan to be refinanced through dividend policy deviation and debt financing.

When will Boliden (BDNNY) begin consolidating Somincor and Zinkgruvan operations?

Boliden will begin consolidating both operations from April 16, 2025, the completion date of the acquisition.