06:07 AM EST, 12/27/2024 (MT Newswires) -- Sierra Metals ( SMTSF ) late on Thursday said a majority of its shareholders rejected a proposed all-cash takeover bid from Alpayana S.A.C. to acquire all of Sierra Metals' ( SMTSF ) issued and outstanding common shares for $0.85 per share.

Following Alpayana's news release on Dec. 16, Sierra Metals' ( SMTSF ) board members and executive team have engaged in discussions with a number of concerned shareholders.

Shareholders holding more than 50% of Sierra Metals' ( SMTSF ) common shares have informed the company that the proposed bid price is inadequate.

The company and its advisors believe that the takeover bid as announced would not succeed based on the clear consensus among the majority of shareholders. Sierra Metals ( SMTSF ) has determined that proceeding with a formal bid would be an unproductive use of time and resources.

"We are very encouraged by the strong support expressed by our shareholders. They have been very clear in their view that the proposed bid price of $0.85 significantly undervalues the company," said Sierra Metals ( SMTSF ) CEO Ernesto Balarezo.

The company has engaged BMO Capital Markets as financial advisor, Mintz LLP as legal counsel and Carson Proxy Advisors as communications advisor. The special committee of independent directors of the board has engaged Bennett Jones as legal advisor.

The company advises shareholders to take no action at this time.