More on Goldcorp's $2.6B bid for Osisko

Goldcorp (GG +0.5%) is offering C$2.26 a share in cash and 0.146 share in stock.

The offer values Osisko Mining (OSKFF) at C$5.95 a share, or a premium of 15% over its Friday closing price in Toronto.

The proposal is conditional on acceptance by two-thirds of Osisko's shareholders by Feb. 19.

It doesn't look like Goldcorp has the acceptance of Osisko's board, with Goldcorp saying that "Our clear preference remains to engage with Osisko." The Canadian company also has a shareholder rights plan.

The deal will provide Goldcorp with ~10M oz. in gold reserves.

The transaction is "immediately accretive on key per-share metrics, including free cash flow, operating cash flow, net asset value, gold production and gold reserves," GG says.

Goldcorp will receive cash that it can use to develop "key growth projects at Cerro Negro, Éléonore and Cochenour over the next 18 months." (Previous) (PR)

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Comments (1)
  • Brian58
    , contributor
    Comments (330) | Send Message
    accretive immediately and stock down? Adding
    13 Jan 2014, 10:03 AM Reply Like
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