Post by
nor_easter on Nov 10, 2014 8:17am
New Gold to Acquire Bayfield Ventures
New Gold to Acquire Bayfield Ventures
TORONTO, Nov. 10, 2014 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) and (NYSE MKT:NGD) today announces that it has entered into a definitive agreement (the "Agreement") to acquire 100% of Bayfield Ventures Corp. ("Bayfield") pursuant to a plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, Bayfield shareholders will receive 0.0477 of a New Gold common share for each Bayfield common share held. The offer values Bayfield at $0.21 per common share or approximately $16.6 million, representing a 50% premium to Bayfield's November 7, 2014 closing price and a 47% premium based on each company's 20-day volume weighted average trading price. It is expected that upon completion of the Arrangement, approximately 3.8 million New Gold common shares will be issued in consideration for Bayfield's outstanding shares, which represents 0.8% of New Gold's currently outstanding common shares. Following completion of the Arrangement, in accordance with their terms, Bayfield's outstanding warrants will be adjusted based on the exchange ratio and become exercisable for New Gold common shares.
Comment by
garyseven on Nov 10, 2014 9:12am
Not a very good deal. I purchased 6 months ago and this deal provides me with a breakeven. The timing of this deal is rediculous. It is occuring when the share price has been hammered. Wait about 6 months and we should be able to get double this price. I will vote against the deal.