MEXICO CITY (dpa-AFX) - Fresnillo Plc (FRES.L), a Mexican precious metals miner, said on Friday that it has sold its stake in MAG Silver Corp. (MAG, MAG.TO) following the announcement of the deal that Pan American Silver Corp. (PAAS, PAAS.TO) is set to buy MAG Silver.
Fresnillo had earlier acquired its stake in MAG Silver to support the strong partnership at Juanicipio, a silver mine, where Fresnillo is the operator and majority owner.
Under the terms of Pan American Silver's acquisition deal with MAG Silver, Fresnillo's shareholding of over 9% in MAG Silver would convert into a shareholding of less than 1% of Pan American following this proposed acquisition.
Fresnillo believes the conversion of shares does not align with its strategic investment objectives, and therefore it has sold the majority of its MAG Silver shares.
Post acquisition, Fresnillo aims to build a collaborative relationship with Pan American.
Earlier this month, Pan American Silver had said it decided to acquire MAG Silver in a transaction valued at $2.1 billion.
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