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Boliden Inks $1.3 Billion Deal with Votorantim to Buy Majority Stake in Nexa Resources

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Boliden Inks $1.3 Billion Deal with Votorantim to Buy Majority Stake in Nexa Resources

Boliden (BOL.ST) entered into a $1.31 billion agreement with investment holding company Votorantim to secure a 64.68% shareholding in Nexa Resources, putting it in a comfortable position to eventually launch a full takeover of the US-listed zinc and silver producer.

The Swedish metals and mining company will issue 21.4 million new shares as consideration for the transaction, according to a Thursday release. The issuance will give Votorantim a 7% stake in Boliden and representation on the company's board. For Boliden, the share transfer is expected to be immediately accretive to EPS by more than 8%.

The transaction implies a total equity value of $2.03 billion for Nexa. The US company operates in Brazil and Peru, providing Boliden with the opportunity to expand its position in zinc mining and smelting.

"In addition to positioning Boliden as one of the leading zinc providers in the world, the transaction will reinforce our standing as a globally important base metal producer and bring a healthy addition to our precious metal business with a large increase to our output of silver in concentrate. Furthermore, Boliden's and Nexa's combined project portfolio will be highly attractive and present a solid foundation for future growth, said Boliden Chief Executive Officer and President Mikael Staffas.

"Also, I am very confident that entering two highly attractive mining and smelting jurisdictions in Latin America together with an experienced partner, who will also become a significant Boliden owner, will bring benefits to internal and external stakeholders both short-term and long-term," Staffas added.

Completion of the acquisition is expected in the first quarter of 2027, subject to the approval of shareholders and relevant regulators, among other conditions. Boliden said it will launch a voluntary tender offer for all the remaining shares in Nexa after closing the deal.

Boliden shares decreased more than 3% in early morning trading.

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