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Osisko finds white knight in deal to sell 50% stake to Yamana Gold

  • Yamana Gold (AUY +1.7%) and Osisko Mining (OSKFF +3%) announce a partnership in which AUY will acquire a 50% interest in Osisko's mining and exploration assets for C$441.5M in cash and 95.7M AUY common shares having an aggregate value of C$929.6M.
  • AUY will become an equal partner in all of Osisko's mining and exploration assets; Osisko will continue to operate the Canadian Malartic Mine and all other projects under the guidance of a joint operating committee.
  • AUY is stepping in as Osisko's white knight as the latter attempts to fight off a hostile takeover bid by Goldcorp (GG +2.9%), but the deal is complicated and will require some selling to shareholders.
Comments (9)
  • Stock Market Mike
    , contributor
    Comments (2630) | Send Message
     
    I don't get it. GG offered 2.8b for 100%, but Yamana offers 930m for 50%? How is this a good deal for Osisko shareholders?
    2 Apr 2014, 10:28 AM Reply Like
  • Ninja Trader
    , contributor
    Comments (1339) | Send Message
     
    It's $441.5 + 929.6 = $1.371B.
    2 Apr 2014, 10:34 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2630) | Send Message
     
    Ahh, thank you, I misread that line.
    3 Apr 2014, 12:27 PM Reply Like
  • Henri DeToi
    , contributor
    Comments (408) | Send Message
     
    I sold my shares in OSK. This is getting too complicated.
    2 Apr 2014, 11:03 AM Reply Like
  • Martin_Kostka
    , contributor
    Comments (17) | Send Message
     
    I didn't like the situation and sold GG with a small profit and changed to AUY. And guess what? They are in the Osisko situation now too! Poor me :)
    2 Apr 2014, 02:24 PM Reply Like
  • Henri DeToi
    , contributor
    Comments (408) | Send Message
     
    The big players seem to want this Malartic mine real bad. Apparently, it's the best gold mine in Canada.
    3 Apr 2014, 11:27 AM Reply Like
  • dancing duke
    , contributor
    Comments (94) | Send Message
     
    AS a shareholder in both, I fail to see any advantage except for a short term price swing.
    I can not see how two management teams running the same mine is cost efficient and osisko management and boards previous argument that a multitude mine owning company could not do better than a single mine company,in retrospect shows how fully of deception they really are.
    I believe the time has come to move on and find a management team and a board of directors that does not deal in self interest ,but truelyrepresents the shareholders
    2 Apr 2014, 02:07 PM Reply Like
  • cavender7
    , contributor
    Comments (21) | Send Message
     
    To quote, "The deal, which will see Yamana pay a total of C$929.6 in cash and common shares, essentially trumps Goldcorp Inc.’s (TSX:G)(NYSE:GG) C$2.6 billion hostile bid in early January."
    So I too am perplexed as to how this benefits Osisko shareholders except for them needing to retain the management.

     

    Osisko shareholders need to also ask themselves which stock has more upside, Goldcorp or yamana and also note that Yamana has mines in more trouble spots than GG.
    I own GG so I am prejudiced.
    2 Apr 2014, 04:00 PM Reply Like
  • Henri DeToi
    , contributor
    Comments (408) | Send Message
     
    Well, for one, GG was offering 5.95 per share when Osisko is trading way over 6$ and for a while exceeded 7$. I sold my shares for much more than what GG was offering.
    3 Apr 2014, 04:21 PM Reply Like
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