(Adds deal details from company statement, premium)
Nov 14 (Reuters) - Pan American Silver Corp said on Wednesday it agreed to buy miner Tahoe Resources Inc for $1.07 billion in cash and stock, creating one of the world's top silver mining companies.
Pan American shareholders will own about three-fourths of the combined company, with Tahoe shareholders owning the rest in the combined company, Pan American said.
Tahoe shareholders may elect to receive $3.40 in cash or 0.2403 Pan American share for each Tahoe share held, the company said.
The base purchase price of $3.40 per share represents a premium of about 55 percent to Tahoe's last close.
The purchase price is limited to a maximum cash consideration of $275 million and a maximum issue of 56 million Pan American shares.
The deal also includes an issuance of contingent value rights to Tahoe shareholders, payable upon first commercial shipment of concentrate following restart of operations at the Escobal mine, the company said.
The total consideration, including the base purchase price and the conditional payment, is $4.10 per share.
The boards of both companies have approved the deal, the company said.
CIBC World Markets Inc is acting as lead financial adviser to Pan American and Trinity Advisors Corp is acting as financial adviser to Tahoe.
The deal is expected to close in the first-quarter of 2019. (Reporting by Bhargav Acharya in Bengaluru; Editing by Sunil Nair and Gopakumar Warrier)