SHANGHAI Canadas 5N Plus Inc. has agreed to pay 17.5 million ($23.1 million) to the former shareholders of Belgian nonferrous metals distributor MCP Group SA to end an 18-month dispute over its purchase of the company.
The sum is less than one-third of the 54 million ($71.2 million), including interest, still outstanding from the original purchase price in April 2011.
Shares in 5N Plus on the Toronto Stock Exchange closed 13 percent higher June 18at Canadian $2.88 ($2.82) vs. C$2.55 ($2.50) the previous dayafter the company released details of the deal, which also includes the withdrawal of all arbitration and legal action by both sides.
MCPs former directors had launched arbitration proceedings related to the calculation of interest on money still owed to them, with 5N Plus filing a counterclaim in which it accused the former shareholders of breaching the terms of the sale.
Montreal-based 5N Plus, a producer of specialty metal and chemical products, had purchased the MCP shares from Florinvest SA, Heresford Ltd., Metals Corp. SCRL and Societe Regionale dInvestissement de Wallonie SA (SRIW) for 300.8 million in a combination of cash, shares and debt.
"We are pleased with the outcome and the complete settlement of this dispute as it will allow our management to solely focus on the corporations main objective of increasing shareholder value," 5N Plus president and chief executive officer Jacques LEcuyer said.
A version of this article was first published by AMM sister publication Metal Bulletin.