TMAC Resources (TSX: TMR) is being acquired. This time however, it isn’t by a China-based firm. The company this morning announced that it will be acquired by that of Agnico Eagle (TSX: AEM), with the transaction being effected by way of assignment of the prior arrangement that was in place with Shandong Gold Mining.
The benefit to shareholders here however, is that they are to receive $2.20 per share of TMAC currently held, an increase of $0.45 per share compared to the prior $1.75 offer price by that of Shandong. The price represents a 66% premium to the current average trading price of the equity, and a 26% premium to the prior offer price.
Shareholders will also be happy to hear that due to the offer being executed way of assignment, Shandong is effectively assigning their prior arrangement to that of Agnico. What this means for shareholders, is that the approval process does not need to be restarted from a shareholder perspective, with the company utilizing the prior shareholder meeting to demonstrate 97.08% approval of the transaction, thus shortening the time to closing. A final order will be sought by the company via the Ontario Superior Court of Justice on January 20, 2021, with the overll goal of trying to close the transaction before February 8, 2021.
As per the news release this morning, the total equity value in the transaction is approximately $286.6 million, with Agnico to also retire TMAC’s outstanding debt and deferred interest and fees.
Sponsored · Antimony Resources
TMAC Resources last traded at $1.57 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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