Vancouver’s Goldcorp Inc. (TSX:G)(NYSE:GG) has boosted its hostile takeover bid for Osisko Mining Corp. to a total $3.6 billion, or $7.65 per share, the senior gold producer announced April 10.
This represents an almost 40% increase from the previous bid of $2.6 billion. The offer has been extended until April 22.
“The recent completion of our due diligence process has confirmed the technical and financial merits of our decision to acquire Osisko,” said Goldcorp president and chief executive officer Chuck Jeannes. “Goldcorp’s increased offer represents straightforward and superior value for Osisko shareholders, while ensuring accretion on key per-share metrics for Goldcorp shareholders.”
Jeannes went on to explain that Osisko shareholders would retain control in the company’s wholly owned Canadian Malartic gold mine – its main asset.
This comes just over a week after Osisko had announced a partnership with Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) that would see Yamana acquire 50% of Osisko’s assets for $441.5million.
Osisko had rejected Goldcorp’s original $2.6 billion hostile takeover bid in January, calling it “opportunistic.”
Osisko reiterated its opposition to Goldcorp’s offer in an April 2 press release, which said, “The Osisko Board determined that the Goldcorp offer fails to adequately compensate Osisko shareholders for, among others things, the strategic value of Osisko’s world-class asset base, the significant upside potential of Osisko’s Canadian Malartic Mine, or the increased risk inherent in Goldcorp common shares.”
-With files from Mining.com and Sean Kolenko
