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IAMGOLD France proposes acquisition of EURO Ressources shares

Published Nov 14, 2023 08:42
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PARIS - IAMGOLD (NYSE:IAG) Corporation, through its French subsidiary IAMGOLD France S.A.S., has announced its intention to acquire all outstanding common shares of EURO Ressources S.A. that it does not already own. The proposed transaction offers €3.50 per share, which is a 6.71% premium over the closing price on the Euronext Paris stock exchange as of Monday.

The Canadian-based intermediate gold producer, with operations in North America and West Africa, currently holds 90% of EURO's share capital and 94.37% of its voting rights. The acquisition is set to be financed through IAMGOLD France's existing cash reserves and will proceed with a squeeze-out under French law after completion.

IAMGOLD's relationship with EURO includes quarterly payments linked to the Rosebel Gold Mine's royalty and a significant majority of EURO's annual dividend, after taxes. Furthermore, IAMGOLD France benefits from a royalty on the Paul Isnard concessions.

The acquisition process began today with IAMGOLD France submitting a draft buy-out offer to the Autorité des marchés financiers (AMF), the regulatory body in France. The offer document, which will provide detailed terms and a proposed timetable for the acquisition, will be made available on IAMGOLD's website, AMF's website, and under EURO's profile on SEDAR+ once it receives AMF clearance.

In this strategic move, IAMGOLD has appointed Natixis as its Financial Advisor and Presenting and Guaranteeing Bank for the offer. Legal advisement for the transaction will be provided by Norton Rose Fulbright LLP for French legal matters and Fasken Martineau DuMoulin LLP for Canadian legal concerns.

EURO shareholders are encouraged to thoroughly review the forthcoming offer document for critical information regarding the offer's specifics and potential tax implications. They are also advised to seek independent advice to make an informed decision about the offer.

The offer will be made in compliance with French requirements and applicable exemptions in Canada and the United States. Following Canadian securities laws, an early warning report will be filed by IAMGOLD in connection with this transaction.

IAMGOLD is also advancing its Côté Gold project in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to commence production in Q1 2024, along with holding a silver stream agreement with a subsidiary of Orezone Gold Corporation.

InvestingPro Insights

In light of IAMGOLD's recent announcement to acquire all outstanding common shares of EURO Ressources S.A., it is pertinent to consider the InvestingPro data and tips.

According to InvestingPro data, IAMGOLD's Market Cap stands at 1043.32M USD, with a P/E Ratio at 11.83. The company's revenue over the last twelve months as of Q3 2023 was 896.7M USD, representing a growth of 16.45%. However, the company has experienced a significant hit in its stock price over the last week, with a decrease of 9.64%.

InvestingPro Tips suggest that despite the recent stock hit, the company's revenue growth has been accelerating. Additionally, net income is expected to grow this year. However, potential investors should note that the company is quickly burning through cash and suffers from weak gross profit margins.

For more detailed insights and additional tips, consider the InvestingPro product, which includes a total of 9 tips related to IAMGOLD. These tips can provide a more comprehensive understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

IAMGOLD France proposes acquisition of EURO Ressources shares
 

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