Alamos Gold Bids $792.6 Million for Aurizon Mines
Jan 14th 2013 4:37PM
Updated Jan 14th 2013 5:05PM
On Monday, Canadian miner Alamos Gold announced it is offering to acquire all outstanding shares of rival miner Aurizon Mines for a total purchase price of $792.6 million, a price that, if accepted, would constitute a 40% takeover premium to the shares' price at close of trading Friday.
Per share, the offer is $4.73, payable either in cash or in the form of 0.2801 of an Alamos share. Across the breadth of the deal, Alamos notes that it is prepared to pay as much as $310 million of the purchase price in cash, or up to 23,500,000 in the form of shares. Alamos further noted that it already owns 16% of Aurizon's shares.
Aurizon has not yet responded to the offer, but its shareholders seem pleased -- Aurizon shares are currently up 33% on the news at $4.60 apiece. Alamos, in contrast, saw its shares drop 11.5% to $14.97.
Simultaneously, today Alamos advised that it has applied to the New York Stock Exchange to list its shares there under the ticker symbol "AGI."
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