Update: Lumina Copper Shareholders Agreed To Be Acquired By First Quantum Minerals

| About: Lumina Copper (LCPRF)
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Shareholders overwhelmingly approve the offer made by First Quantum Minerals.

As I thought the offer to be very fair, one can't say this is a surprising outcome of the shareholder meeting.

If shareholders chose for the partial cash/partial shares possibility, it would make sense to hold the First Quantum shares because of the lower risk profile.

Lumina Copper (OTC:LCPRF) recently held its extraordinary general meeting of shareholders with just one main point on the agenda; a vote on the takeover proposal made by senior copper producer First Quantum Minerals (OTCPK:FQVLF). The support for the proposed transaction was overwhelming and with 99.93% of the attending shareholders voting in favor of the proposal, the result was close to a unanimous approval.

No time was wasted and the buyout was completed earlier this week under a plan of arrangement. Shareholders of Lumina Copper had the choice between C$5 in cash and 0.2174 new First Quantum shares or 0.2724 shares and an additional C$3.74 in cash of First Quantum or C$10 in cash.

As I thought the proposal was very fair (as it was close to my estimated fair value), it's no surprise that Lumina's shareholders approved the deal as it allows them to either cash in their chips and/or be part of a larger group which is also focused on copper but with more country diversification. Additionally, with First Quantum now advancing Lumina Copper's flagship Taca Taca project in Argentina, the odds of getting financing for this multi-billion dollar project are much better. This agreement is a win-win situation for everybody involved and I expect a lot of the Lumina Copper shareholders to keep their First Quantum shares, following the example of Ross Beaty which was Lumina's largest shareholder.

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