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
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.
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.
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.
version of this article was first published by AMM sister
publication Metal Bulletin.