There has been significant attention on the metals sector in recent times, and investors are naturally hunting for stocks to follow in the sector. One of the companies that could be worth tracking at this point is Sierra Metals Inc. (OTCQX:SMTSF), which had been in the news on Thursday following a key development. Here’s a closer look at the news before starting trading today.
Shareholders Reject Takeover
On December 26, the company was in the news cycle in a big way after it announced that the majority of the Sierra Metals shareholders had made a commitment to not tender their shares in case of a formalized proposed unsolicited all-cash acquisition bid from Alpayana SAC. The all-cash bid would be for the acquisition of all the issued and outstanding shares in Sierra Metals for the price of $0.85 a share.
Further Information
It was on December 16, 2024, that Alpayana had released a news story in which it was notified that its members of the board had spoken to many of the concerned decision-makers of Sierra Metals. However, the decision-makers of the company noted that they believed that the takeover bid was not going to succeed.
Ernesto Balarezo, Sierra Metals’ CEO, commented:
“We are very encouraged by the strong support expressed by our shareholders. They have been very clear in their view that the proposed bid price of $0.85 significantly undervalues the company. We are confident that our shareholders recognize both the substantial progress we have made over the past two years and the tremendous potential to further enhance the value of our core assets based on initiatives already underway.”
