May 7 (Reuters) - Private equity firm Waterton Global Resource Management Inc on Tuesday said it agreed to not increase its stake in Hudbay Minerals Inc to more than 15 percent after the private equity firm settled its drawn out proxy contest with the Canadian miner.
Hudbay last week settled a board battle with its second largest shareholder, Waterton, to elect a slate of 11 board members that includes some of the nominees proposed by both parties.
The standstill provisions, under which Waterton reached the agreement, is part of the settlement agreement between Hudbay Minerals and Waterton, to deal with a long-drawn out proxy contest with the private equity firm, which urged the miner to replace its chief executive officer and nominated five directors to the company's board. (bit.ly/2VPkrES)
Separately, Hudbay also announced the election of eleven directors of Hudbay at the company's annual and special meeting of shareholders.
Waterton, which owns a 12.1 percent stake in Hudbay Minerals, had also recently filed a suit against Hudbay in a bid to stop it from soliciting proxies for its annual shareholder meeting scheduled for May 7. (Reporting by Arundhati Sarkar in Bengaluru, editing by G Crosse in New York)