MAG Silver Corp. (MAG:TSX; MAG:NYSE American) agreed to be acquired by Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) for a combination of cash and stock, reported Joe Reagor, ROTH Capital Partners managing director and senior research analyst, in a May 12 research note.
On the news, ROTH raised its target price on MAG to US$18 per share from US$16 and maintained its Neutral rating.
ROTH based its new target on the current value of the acquisition, about US$18.30 per MAG share, prorated, as estimated by the investment bank, based on Pan American's current US$23.33 share price, Reagor wrote.
According to the deal terms, MAG shareholders are to receive a prorated share of US$500 million in cash and about 60 million (60M) shares of Pan American Silver.
JV Partner Could Jump In
ROTH believes the transaction likely will receive all of the requisite approvals and close later this year, Reagor wrote.
However, he pointed out, MAG's joint venture (JV) partner Fresnillo Plc (FNLPF:OTCMKTS; FRES:LSE) could make a competitive offer for MAG though so far it has not shown signs it will. Rather, Fresnillo has expressed its approval of the sale to Pan American and hosted the acquirer for a site visit in Mexico at Juanicipio, Fresnillo and MAG's JV project.
More Stock Details
Reagor reported that currently MAG Silver has 103.45M outstanding shares, a market cap of US$1.6 billion and a 52-week range of US$11.58–17.99 per share.
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Important Disclosures:
- MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan American Silver Corp.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for ROTH Capital Partners, MAG Silver Corp., May 12, 2025
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclosures: ROTH makes a market in shares of MAG Silver Corp. and as such, buys and sells from customers on a principal basis
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.
