Rio Verde board backs B&A's acquisition offer

The board of Toronto-based Rio Verde Minerals Development (TSX: RVD) has accepted an acquisition offer by Brazilian company B&A Mineração. The two firms have entered into a definitive agreement whereby B&A will buy all of Rio Verde's issued and outstanding common shares that it does not currently own for Cdn$0.40 apiece, according to a Rio Verde statement on Thursday (Dec 13). The deal values Rio Verde's equity at Cdn$48.6mn (US$49.3mn). The company is focused on exploring and developing fertilizer assets in Brazil, including the Sergipe potash and Bonito phosphate projects in the country's north. Rio Verde's board unanimously recommended that shareholders back the deal. A meeting is scheduled for mid-February next year to vote on the acquisition, which is also subject to regulatory approval. "Upon closing of the transaction, B&A intends to advance the Bonito and Sergipe projects through the design, construction and operational phases of its development," the statement said. B&A Mineração is a mining-focused venture formed by Brazilian investment bank BTG Pactual and former Vale (NYSE: VALE) CEO Roger Agnelli. The new company has earmarked up to US$520mn for investment.