Canadian gold miner Franco-Nevada offers $608 million for International Royalty
08 December 2009
Gold-focused Canadian resource royalty company Franco-Nevada Corporation has announced that it intends to buy rival International Royalty Corporation (IRC), a Colorado-based royalty firm for approximately C$640 million ($608 million) in an all-cash deal.
The offer price of C$6.75 per share of IRC represents a 43 per cent premium to its closing price on Friday on the Toronto Stock Exchange (TSX), the company said in a statement. IRC has about 93.7 million outstanding common shares.
Franco-Nevada a gold focused royalty company with additional interests in platinum metals, oil and gas and other assets. The majority of revenues are generated from a diversified portfolio of over 300 high quality assets located principally in the US, Canada and Australia.
Franco-Nevada also holds a pipeline of potential future cash flowing assets that are being developed, permitted or explored. Its shares are listed on the TSX.
IRC confirmed through a press release yesterday that it has been informed of Franco-Nevada's intention to submit a formal offer, and the company's board will hold a meeting with its financial and legal advisors for an appropriate response.
Further to the news of a possible takeover, IRC shares surged a whopping 50 per cent to end at C$7.06 yesterday, while Franco-Nevada shares dropped 6.6 per cent to C$26.30 on the TSX.