On Thursday, Canadian mining company Silvercorp Metals (TSE:SVM) (NYSEMKT:SVM) presented OreCorp with an improved acquisition offer. This was in response to growing frustration among OreCorp shareholders regarding the previous offer.
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Silvercorp’s revised bid includes an additional $13 million in cash for the African gold developer, a significant bump from its previous offer of $157 million, made in August. This represents a 27% increase, raising the cash portion to A$0.19 per share from A$0.15 per share.
Furthermore, the scrip consideration of 0.0967 Silvercorp shares for every OreCorp share remains unchanged. At present, Silvercorp owns 72,312,344 OreCorp shares, representing 15.40% of OreCorp’s fully paid ordinary shares.
Shares of Silvercorp metal edged lower in Thursday’s trading session on the Toronto Stock Exchange.
Is SVM a Good Stock to Buy?
On TipRanks, SVM stock commands a Strong Buy consensus rating based on three Buys. After a 22.76% drop in its share price this year, the average SVM price target of C$6.47 per share implies 102.11% upside potential.
