Wed Apr 16, 2014 8:31am PST
Yamana Gold and Agnico Eagle will likely acquire 100% of Osisko Mining Corporation (TSX:OSK) for $3.9 billion, thwarting Vancouver-based Goldcorp’s long-running hostile takeover attempt, Osisko announced April 16.
The total bid price by the two miners is 11% higher than Goldcorp’s last bid of $3.6 billion, which was not Goldcorp’s first attempt to acquire Osisko. Its first hostile takeover bid in January, for $2.6 billion, was deemed “opportunistic” and rejected by Osisko.
“With the announcement today [April 16] of the combined bid by Yamana and Agnico Eagle, I believe we have delivered shareholders the superior value option to the hostile attempt to acquire our company,” said Sean Roosen, Osisko’s president and CEO.
“The new Osisko will be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential.”
Yamana and Agnico will each acquire 50% of Osisko, whose main asset is its wholly owned Malartic gold mine in Quebec.
Osisko’s board unanimously voted to accept this agreement. Osisko shareholders still need to vote on the matter.
