Yamana extends offer for Meridian again, ups per-share offer price

By Lisa Kerner

Charlotte, N.C., Sept. 24 - Yamana Gold Inc. agreed to increase its purchase offer for Meridian Gold Inc. to C$7.00 per share, from $6.50 per share, plus 2.235 Yamana common shares for each Meridian common share tendered and taken up by Yamana.

In addition, Yamana extended its offer to midnight E.T. on Oct. 12. The offer had been slated to close on Oct. 2.

"As a result of our extensive discussions with Meridian since the previous increase in our offer and a review of Meridian's confidential information through due diligence, we have been able to augment our initial assessments and increase our offer," Yamana chairman and chief executive officer Peter Marrone said in a company news release.

"Our agreement provides Meridian shareholders with an attractive premium for their shares and a significant stake in a dynamic and growing company," Meridian president and CEO Ed Dowling added. "The combined company represents an exceptional value-based investment providing growth in resources, production, cash flow and earnings along with sustainability and longevity."

The terms of Yamana's agreement with Northern Orion remain unchanged, and it is Yamana's intention to close the plan of arrangement with Northern Orion as soon as practical after the successful tender of the Meridian shares, the release stated.

It was previously reported on Sept. 20 that Yamana increased the cash component of its offer for Meridian by 63% to C$6.50 per share from C$4.00 per share. Yamana reduced the minimum tender condition in its acquisition of Meridian to 50.1%, from 66 2/3% and extended the offer deadline to 8 p.m. ET on Oct. 2 from Sept. 24. Yamana cited market conditions, the "operational upside" to Meridian's assets and updated fairness opinions from Genuity Capital Markets and Canaccord Capital Corp. as reasons for the increase.

About 24.4 million, or 24%, of Meridian's common shares had been tendered as of Sept. 19.

On July 20, Meridian's board of directors said it would consider the original unsolicited tender offer by Yamana to acquire the company for 2.235 Yamana common shares plus C$3.15 in cash for each common share of Meridian.

Meridian is a mid-tier gold producer with mining operations in Chile and Nevada. The company is based in Reno, Nev.

Yamana is a Toronto-based precious metals mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.