Friendly deal valued at $3.9 billion will see the gold miner acquired by Yamana Gold and Agnico Eagle Mines Ltd. Osisko Mining Corp. (TSX:OSK) announced a new friendly deal Wednesday valued at $3.9 billion that will see the gold miner acquired by Yamana Gold and Agnico Eagle Mines Ltd.
The offer for the company and its Canadian Malartic mine in Quebec tops a rival hostile bid by Goldcorp (TSX:G) that was valued at $3.6 billion or $7.65 per share.
The deal will also see Osisko shareholders receive shares in a new company that will receive a royalty on the production from Canadian Malartic and the company’s existing exploration properties as well as hold $155 million cash and the company’s Guerrero exploration project in Mexico.
Osisko president and chief executive Sean Roosen noted the first hostile offer by Goldcorp valued his company at about $2.6 billion in January. “I think that we’ve delivered a significant amount of value to shareholders,” he told a conference call with investors.
“I feel this is the best outcome that we could possibly come to and we’ve set the stage for two excellent companies to share in the potency of the Canadian Malartic asset and for us to continue on to build value for shareholders.”
Under the stock-and-cash offer valued at $8.15 per share, Osisko shareholders will receive $2.09 in cash, 0.26471 of a Yamana share (TSX:YRI), 0.07264 of an Agnico Eagle share (TSX:AEM) and one new share in the new Osisko with a value of $1.20 per share.
The deal, which will require a two-thirds majority vote by shareholders, also gives Yamana and Agnico Eagle five business days to match any superior offer and includes a $195-million break fee, payable under certain circumstances to the buyers if the deal is called off.
Yamana chairman and chief executive Peter Marrone said his company and Agnico Eagle will become equal partners in managing Canadian Malartic and the other assets it is acquiring.
“The acquisition structure minimizes the level of risk generally associated with acquisitions and entering into a new jurisdiction,” Marrone said.
“Agnico Eagle is established, it has a presence in the region and it complements the partnership’s collective expertise with large conventional open-pit operations.”
For the rest of this article, click here: http://www.vancouversun.com/business/Osisko+Mining+deal+leaves+Vancouver+Goldcorp+cold/9744524/story.html