The world's largest multinational corporations, top-tier international investment banks, private equity and entrepreneurs all rely on our Corporate Department to resolve their thorniest legal and business challenges. Our lawyers have earned high praise for their innovative approach to complex transactions and are recognized internationally as leaders in mergers and acquisitions, capital markets, finance and investment funds.
Yamana Gold Announces Deal with Osisko Mining
- Client News
- April 2, 2014
Practices
Paul, Weiss client Yamana Gold Inc. announced that it had entered into a definitive agreement to acquire a 50 percent interest in the mining and exploration assets of Osisko Mining Corporation for cash and Yamana common shares having an aggregate value of approximately Cdn$1.37 billion. Yamana is a TSX- and NYSE-listed Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties and land positions throughout the Americas including Brazil, Argentina, Chile and Mexico. Osisko, which has been the subject of an unsolicited offer from Goldcorp Inc. since January, operates the Canadian Malartic Gold Mine in Malartic, Quebec and is pursuing exploration on a number of properties, notably in Quebec, Ontario and Mexico.
Under the terms of the definitive agreement, each Osisko shareholder will receive Cdn$2.194 in cash and 0.2119 of a Yamana common share for each Osisko common share held, for an implied value of Cdn$7.60 per Osisko share, or Cdn$3.4 billion in the aggregate, which represents a premium of approximately 10 percent to Osisko's closing price prior to announcement and 22 percent to the Goldcorp unsolicited offer. In connection with the Yamana transaction, the Canada Pension Plan Investment Board agreed to lend the new partnership Cdn$275 million and La Caisse de dépôt et placement du Québec agreed to purchase a gold stream from the partnership for Cdn$275 million.
The Paul, Weiss team included corporate partners Adam Givertz and Ted Maynard.