Hot Stock Movers: Apache, Research in Motion, Pan American Silver and Fifth Street Finance
Research In Motion Limited (NASDAQ:RIMM): The Board of Directors of Research In Motion, or RIM, announced that, acting on the recommendation of its Co-CEO to implement the succession plan they previously submitted to the Board, it has unanimously named Thorsten Heins as President and CEO. Heins was also appointed to RIM’s Board. The Board acted after conducting its own due diligence. Both appointments are effective immediately. Mike Lazaridis, former Co-Chair and Co-CEO, has become Vice Chair of RIM’s Board and Chair of the Board’s new Innovation Committee. As Vice Chair, he will work closely with Heins to offer strategic counsel, provide a smooth transition and continue to promote the BlackBerry brand worldwide. Jim Balsillie remains a member of the Board. Lazaridis said that he decided to move from Co-Chair to Vice Chair of the Board in order to return the public’s focus to what is most important: “the great company we have built, its iconic products, global brand and its talented employees. We have been impressed with his operational skills at both RIM and Siemens. I am so confident in RIM’s future that I intend to purchase an additional $50M of the company’s shares, as permitted, in the open market.” Heins said, “BlackBerry 7 has been well received. We are very excited about PlayBook 2.0 and BlackBerry 10. The reception of our products at this year’s Consumer Electronics Show was encouraging.” The company in the process of recruiting a new Chief Marketing Officer to work closely with their product and sales teams to deliver the most compelling products and services. Shares of Research In Motion Limited are trading 6.47% lower today.
Apache Corporation (NYSE:APA): Apache announced that it has agreed to acquire Cordillera Energy Partners III LLC, a privately held company with substantial operations that include approximately 254,000 net acres in the prolific Granite Wash, Tonkawa, Cleveland and Marmaton plays in western Oklahoma and the Texas Panhandle, for $2.85B. In addition to estimated proved reserves of 71.5 Mboe and current net production of 18,000 boe per day, Cordillera has assembled a leading acreage position with significant resource potential including 14,000 potential drilling locations in liquids-rich Anadarko Basin plays. The acquired acreage is characterized by high working interest and operatorship; approximately half is held by production. The acquisition is expected to be accretive to Apache’s earnings and cash flow beginning in 2012. The development drilling program is self-funding beginning in 2013. The sellers, including EnCap Investments, other institutional investors and Cordillera management will receive approximately $600M in Apache common stock subject to customary lock-up provisions. The balance of the consideration will be paid in cash to be funded with debt. The effective date of the transaction is Sept. 1, 2011, with closing anticipated in the second quarter, subject to regulatory approval and customary closing conditions. Cordillera will continue to acquire acreage in the area on Apache’s behalf through closing. Shares of Apache Corporation are trading 0.11% higher today.
Pan American Silver Corp. (NASDAQ:PAAS): Pan American Silver (NASDAQ:PAAS) and Minefinders Corporation (AMEX:MFN) are pleased to announce that they have entered into a definitive agreement (the “Arrangement Agreement”) pursuant to which Pan American will acquire all of the issued and outstanding common shares of Minefinders by way of a plan of arrangement. Under the terms of the Arrangement Agreement, Minefinders shareholders will be entitled to elect to receive, in exchange for each Minefinders share held, either: (i) 0.55 shares of Pan American and $1.84 in cash; or (ii) 0.6235 shares of Pan American; or (NASDAQ:III) $15.60 in cash, subject to pro-ration under total aggregate cash and share pools of approximately $176 million and approximately 53 million Pan American shares, respectively, on a fully-diluted basis. Assuming full pro-ration, Minefinders shareholders will receive 0.55 shares of Pan American and $1.84 in cash in exchange for each Minefinders share held. The consideration represents a total offer value of $15.60 per Minefinders share, based on the January 20, 2012 closing price of Pan American common shares on the Toronto Stock Exchange and a premium of 36% to the January 20, 2012 closing price of Minefinders shares on the Toronto Stock Exchange (33% premium based on the respective volume weighted average prices of Pan American and Minefinders on the Toronto Stock Exchange for the 20 trading days ending January 20, 2012). The proposed transaction implies a total transaction value of approximately $1.5 billion. Upon completion of the transaction, existing Minefinders shareholders will own approximately 33% of Pan American on a fully-diluted basis. Shares of Pan American Silver Corp. are trading 7.73% lower today.
Fifth Street Finance Corp. (NASDAQ:FSC): Fifth Street Financial issued 10 million shares in secondary market priced at $10.16 Credit Suisse and RBC Capital acted as joint book running managers for the offering. Shares of Fifth Street Finance Corp. are trading 3.98% lower today.
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