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Xstrata Inc.
Challenge: Xstrata plc., was looking to complete
the largest global mining takeover ever and one of the largest
takeover bids in Canadian history, with its all-cash $19.2 billion
offer to purchase the outstanding shares of Falconbridge Inc.
Inco had also made a bid for Falconbridge, and its part-cash,
part-equity offer came in higher than Xstrata’s.
Solution: Kingsdale worked as exclusive Information Agent and Depositary for the deal. Using Canada’s Large Value Transfer System (LVTS) for payments to CDS in the amount of $14 billion – an amount equivalent to payments made to CDS in a typical month – Kingsdale managed all aspects of the payment flow from negotiating agreements with Canada’s financial institutions, arranging real-time settlement of funds as well as making the necessary arrangements with the Bank of Canada.
Result:
As Depositary, Kingsdale helped Xstrata successfully acquire all of Falconbridge’s outstanding shares, completing the largest cash transaction in Canadian history, and creating the fifth-largest diversified mining company in the world.
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