In a 13-point memorandum Osisko Mining rejects Goldcorp’s takeover bid
Osisko Mining Corporation (“Osisko” or the “Company”) (TSX: OSK; Deutsche Boerse: EWX) announced today that its board of directors, on the recommendation of its special committee, unanimously recommends that Osisko shareholders (“Osisko Shareholders”) reject the hostile take-over bid (“the Goldcorp Offer”) launched by Goldcorp Inc. on January 14, 2014 and NOT TENDER their Osisko shares to the Goldcorp Offer.
After careful consideration and discussion, the special committee and Board of Directors have determined, following analysis by the Board of Directors with financial and legal advice, that the offer is financially inadequate and not in the best interests of Osisko. Goldcorp’s offer significantly undervalues Osisko’s world-class Canadian Malartic mine, and the rest of the Company’s portfolio of high-potential projects in North America. The premium offered by Goldcorp, as well as the transaction multiples implied by the offer, are both significantly below the relevant precedents.
The Board of Directors and management of Osisko remain focused on delivering superior value to shareholders. Osisko believes the true strategic value of the Company’s assets will be demonstrated as the review of value-maximizing alternatives progresses. It is important to note that, while Osisko has had several preliminary discussions with Goldcorp over the past five years, those discussions have never led to a credible proposal from Goldcorp. Instead, Osisko has been presented with highly conditional and non-binding proposals that offered inadequate premiums, and value propositions which did not warrant further consideration or engagement by Osisko. The current Goldcorp Offer implied a meager 15% premium at the time of announcement and is significantly less today.
Read all 13 points here.
