#Sweden #Stockholm #Boliden #Nexa Resources #Votorantim

Boliden's Strategic Acquisition of Nexa Resources

In a significant move to consolidate its position as a leading player in the global mining industry, Boliden AB has entered a formal agreement to acquire all shares held by Votorantim S.A. in Nexa Resources S.A. This acquisition represents a pivotal shift for Boliden, granting it a controlling interest of 64.68% in Nexa, a prominent zinc and silver producer operating primarily in Brazil and Peru.

Under the terms of the agreement, Boliden will issue 0.250 newly created shares for each share of Nexa held by Votorantim, resulting in Votorantim owning roughly 7% of Boliden. The deal, which carries an enterprise valuation of approximately USD 3.67 billion, is not just a financial transaction; it marks a strategic alignment that aims to bolster Boliden's mining operations across two critical markets in Latin America.

Mikael Staffas, the President and CEO of Boliden, expressed optimism about the future growth prospects that this deal brings. He highlighted the advantages of merging the robust European operations of Boliden with the extensive operational footprint and local expertise of Nexa in Latin America. This merger is expected to produce substantial synergies and establish a resilient business model, enhanced by Boliden's commitment to responsible mining practices.

Economic Implications of the Transaction

The transaction is expected to be immediately accretive to Boliden's earnings per share (EPS), enhancing its financial position while preserving the integrity of its balance sheet. With significant growth potential, the deal is seen as a way for Boliden to navigate the increasing demands in the metals market, particularly in zinc production, which is vital for various industrial applications.

Moreover, the exchange ratio set at 0.250x reflects a premium to Nexa's recent stock performance, thereby asserting the potential upside and robust interests surrounding this acquisition. As Boliden finalizes this deal, the company anticipates that it will continue to enhance its operational capabilities, bringing Nexa into its fold as a fully consolidated subsidiary.

Corporate Governance and Future Operations

Post-acquisition, Nexa will maintain its status as a distinct entity under Luxembourg laws, with its shares remaining listed on the New York Stock Exchange. Boliden has structured the deal to allow Votorantim a meaningful stake in the company, including a seat on Boliden's Board of Directors, thus fortifying the cooperative spirit and ensuring shared governance.

Furthermore, Boliden has committed to initiating a voluntary tender offer to acquire any remaining Nexa shares that were not covered in the initial transaction, illustrating a clear intent to fully integrate Nexa into its corporate strategy.

This transaction, expected to close in the first quarter of 2027, hinges on several conditions, including shareholder approval from both Boliden and Nexa, in addition to receiving necessary regulatory endorsements. With ongoing dialogues and value proposition analyses, Boliden is poised to transition into a more diversified and geographically resilient corporation.

Conclusion

The acquisition of Nexa Resources by Boliden represents more than just a strategic expansion—it's a calculated maneuver to enhance Boliden's market dynamics and operational efficiencies in the competitive landscape of natural resources. With this acquisition, Boliden is set to leverage its historic expertise, foster long-term sustainable practices, and drive growth within one of the world's most lucrative mining regions.