Agnico’s low-premium Kirkland deal propels stock drop – by Yvonne Yue Li (Bloomberg News – September 28, 2021)

Shares of Agnico Eagle Mines Ltd. and Kirkland Lake Gold Ltd. fell after the two Canadian miners announced a “merger of equals” that offered investors a lower deal premium than other gold combinations.

The $13.4 billion (US$10.6 billion) transaction creates one of the world’s biggest bullion producers and follows other large takeovers in recent years that reshaped the industry.

Agnico’s combination with Kirkland creates a miner with assets in Canada, Australia, Finland and Mexico and an expected production of 3.4 million ounces of gold this year, elevating its ranking among the world’s senior gold producers.

Investors will get 0.7935 of an Agnico share for each Kirkland share, which the companies said represents a 1 per cent premium over Kirkland’s 10-day average share price on the Toronto Stock Exchange, according to Tuesday’s joint statement.

For the rest of this article: