SomaBull • 32 Comments
Apr. 23, 2014, 11:19 AM
- Yamana Gold (AUY -0.6%) and Agnico Eagle (AEM +2%) are "clear winners" for acquiring Osisko Mining (OSKFF) because it is crucial for gold miners to secure low-risk production at this stage in the cycle, National Bank analyst Steve Parsons says.
- It is increasingly difficult to find large gold deposits in mining friendly jurisdictions - such as Osisko's Canadian Malartic mine in Quebec - and companies need to look at obtaining those assets now or face declining production profiles in the future, Parsons says, adding that now is a good time for mid-tier miners to do business with senior producers who are busy cleaning up their balance sheets.
- For AUY, Parsons says the addition of a low-cost, cornerstone asset should help the stock get re-rated towards its higher-multiple peers; for AEM, the deal is accretive on all metrics and adds another cornerstone asset to its already concentrated portfolio.
Apr. 21, 2014, 12:51 PM
- Goldcorp (GG +0.8%) officially gives up its bid for Osisko Mining (OSKFF -0.1%), saying it will not raise its offer to acquire the company; its most recent C$3.6B offer will expire tomorrow night before midnight.
- Yamana Gold (AUY -3.5%) and Agnico Eagle Mines (AEM -3.7%) joined forces last week for a C$3.9B offer to acquire Osisko.
Apr. 16, 2014, 9:51 AM
- 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.
Apr. 10, 2014, 9:56 AM
- Goldcorp's (GG -1.5%) sweetened bid hasn't swayed Osisko Mining (OSKFF +1.6%) CEO Sean Roosen, who makes it clear his company still favors a deal with Yamana Gold (AUY +1.4%) since it ensures continued strong exposure to the Canadian Malartic mine in Quebec: "It has a higher upside than Goldcorp ever will."
- Goldcorp's Chuck Jeannes sees it differently, of course, maintaining that Osisko shareholders will retain continued exposure to Canadian Malartic as well as benefit from Goldcorp’s portfolio of world-class assets.
- Osisko shareholders may be turned off by the complexity of the AUY deal; at least one analyst thinks the GG bid will be viewed more favorably by investors because it is more straightforward and worth slightly more.
Apr. 10, 2014, 7:26 AM
- Goldcorp (GG) has increased its offer for Osisko Mining (OSKFF) to C$7.65 a share in cash and stock, making the deal worth C$3.6B vs C$2.6B previously.
- Goldcorp is offering 0.17 share and an increased cash bid of C$2.92 a share.
- Osisko has been trying to stave off Goldcorp's advances with a deal with Yamana Gold (AUY). (PR)
Apr. 2, 2014, 6:40 PM
- Yamana Gold (AUY) looks to have captured a huge prize in the Malartic gold mine via the acquisition of a 50% stake in Osisko Mining's (OSKFF) mining and exploration assets, but analysts are skeptical about AUY effectively paying a premium without gaining a controlling interest in the mine itself.
- Cowen analyst Adam Graff approves of the deal as it would help generate some tax savings for AUY in Canada, but he doubts the savings will offset the negative impact of the purchase premium.
- Investor Adrian Day says the implied price AUY would pay doesn't look grossly high, but the deal structure, where Yamana will not get control, is unusual; if hostile takeover bidder Goldcorp (GG) comes back with a better offer, he thinks many shareholders will find it easier to wrap their heads around than AUY's deal.
- Analysts had not expected another mining company to challenge Goldcorp, and some see a higher bid coming: "They have been chasing this asset for five years and there is no reason they would let it slip through their fingers."
- AUY shares -2.2% on the day, but most gold miners gained: OSKFF +7.7%, GG +2%, NGD +4.4%, ABX +4%, AGI +4%, NEM +3.3%, ANV +3.3%, NG +3%, GFI +2.7%, KGC +2.6%.
Apr. 2, 2014, 9:59 AM
- 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.
Jun. 18, 2012, 8:06 AM
Extorre Gold Mines (XG) +54% premarket after agreeing to be acquired by Yamana Gold (AUY) for ~C$414M, or C$4.26/share in cash and stock, a 68% premium to Friday's closing price in Toronto. AUY says the "tuck-in" acquisition fits its criteria, including "opportunity for organic growth, accelerated path to development and production, and high return."| Jun. 18, 2012, 8:06 AM | 1 Comment