Agnico Eagle, Yamana Gold announce C$3.9B friendly takeover of Osisko


Yamana Gold (AUY -1.5%) and Agnico Eagle Mines (AEM -3.3%) agree to acquire Osisko Mining (OSKFF) for C$3.9B, or C$8.15/share.

The total offer consists of C$1B in cash, C$2.33B in AUY and AEM shares, and shares of a new company with an implied value of ~C$575M.

The companies say the offer represents an ~11% premium to the implied value of Goldcorp's (GG +2%) hostile bid.

The deal replaces a transaction announced April 2 in which AUY agreed to buy 50% of Osisko’s assets.

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Comments (6)
  • loodi
    , contributor
    Comments (2) | Send Message
     
    Am I reading this right?How is a minus 11% a "premium"?
    16 Apr 2014, 11:01 AM Reply Like
  • tennis111
    , contributor
    Comments (82) | Send Message
     
    I think ~ means approximately, not negative.
    16 Apr 2014, 11:08 AM Reply Like
  • nxt20yrs
    , contributor
    Comments (3) | Send Message
     
    The ~ sign is no minus but means approximately
    16 Apr 2014, 11:28 AM Reply Like
  • evan.prospect
    , contributor
    Comments (704) | Send Message
     
    So this is why AEM is down big today?
    16 Apr 2014, 12:18 PM Reply Like
  • John Grandits
    , contributor
    Comments (635) | Send Message
     
    because they are spending A LOT in cash and stock to make the acquisition, and given the volatility, and recent decline in gold prices it may not be that accretive, initially
    16 Apr 2014, 01:40 PM Reply Like
  • MrFandango
    , contributor
    Comments (27) | Send Message
     
    Well done OSK, stood firm against GG. If GG made a reasonable offer, rather than the insulting and opportunistic one they actually made (fueled by suppressed 2013 PM prices felt across the whole sector) all this nasty business could have been avoided.

     

    (incidentally, I'd rather OSK hadn't been taken over at all. One senses the potential upside with a recovery in PM prices would have been greater for OSK shares alone than even a YAU/AEM combination in the event... but currently holding YAU already and nice to have AEM in for the ride)
    17 Apr 2014, 04:37 AM Reply Like
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