Article from Les Affaires (translated) Osisko Mining (OSK, $4.79): a purchase offer that allows Gold Fields to acquire 100% of the Windfall project
On Monday morning, Osisko Mining announced that it had signed a definitive agreement regarding an offer to purchase South African company Gold Fields for $2.16 billion.
The $4.90 per share price represents a 55% premium to the stock's weighted average price over the 20 trading days prior to the announcement.
Analyst Don DeMarco of National Bank Financial points out that the transaction allows Gold Fields to acquire the 50% portion that it did not already own in the Windfall mining project in Jamsie.
He recalls that Gold Fields had created a joint venture with Osisko for the exploitation of the Windfall gold mine project in May 2023. The company had then acquired a 50% interest in the project for a financial consideration of $750 million.
"The transaction announced Monday is advantageous for Osisko shareholders, as it is carried out in cash and at a significant premium. It reduces the risk with respect to future dilution, convenience, construction and execution risks," he said.
The analyst adds that the transaction gives Osisko a valuation comparable to that of other low-risk Canadian gold producers such as Wesdome (which owns the Kiena mine in Quebec and the Eagle River mine in Ontario).
"Gold Fields' purchase of Osisko shows that the international appetite for Canadian resources is still very much there and could serve as a benchmark for other mergers and acquisitions in the mining industry," he says.
The analyst notes that Osisko's stock has risen only 7.3% over the past year, which lags considerably behind the 25% increase in the Canadian gold index over the same period.
Don DeMarco is maintaining his “outperform” rating on the stock for now. He notes that the transaction is subject to court approval and is expected to close in the fourth quarter of 2024.
The Windfall project is located 200 kilometres northeast of Val-d'Or. Gold Royalties Osisko, headquartered in Montreal, is the largest shareholder in Osisko Mining with a 13.68% interest. According to LSEG, the Caisse de dpt et placement du Qubec ranks 7th with a 2.83% interest in the company.
source : https://www.lesaffaires.com/bourse/a-surveiller/a-surveiller-banque-scotia-osisko-et-ballard-power-systems/?innerpage=2