By Lisa Kerner
Charlotte, N.C., Sept. 8 - Nevada Chemicals, Inc. said it agreed to be acquired by Calypso Acquisition Corp. for $13.37 per share in a cash tender offer valued at a reported $94 million.
Calypso is an affiliate of Cyanco Holding Corp. and OCM Principal Opportunities Fund IV, LP, a fund managed by Oaktree Capital Management, LP.
The per-share offer price is a 36% premium over Nevada Chemicals' closing stock price on Sept. 5, a company news release said.
Stockholders owning a total of approximately 41% of Nevada Chemicals' outstanding common shares agreed to tender their shares in the offer, which is slated to begin within 10 business days.
A $2 million termination fee is included in the companies' definitive agreement, it was reported in a form 8-K filed with the Securities and Exchange Commission.
The merger will close upon approvals.
Nevada Chemicals, through its subsidiary Winnemucca Chemicals, Inc., owns a 50% interest in Cyanco Co., which manufactures liquid sodium cyanide for use in the gold mining industry. The company is located in Sandy, Utah.
| Acquirer: | Calypso Acquisition Corp.
|
| Target: | Nevada Chemicals, Inc.
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| Announcement date: | Sept. 8
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| Transaction total: | $94 million
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| Price per share: | $13.37
|
| Termination fee: | $2 million
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| Expected closing: | Upon approvals
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| Stock price for target: | Nasdaq: NCEM: $9.80 on Sept. 5
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