Bond International Gold became a wholly owned subsidiary of LAC Minerals (TSE) on the last day of August, after a scheme of arrangement for the takeover was sanctioned by the Grand Court of the Cayman Islands.
Through the transaction, LAC becomes North America’s third largest gold producer with an estimated 1991 production of 1.36 million oz., including a 560,000 oz. contribution from BIG. Only Newmont Gold (NYSE) and Placer Dome (TSE) are expected to produce more gold this year.
BIG shareholders, who rejected an earlier buyout offer from LAC based on a 0.53-for-1 exchange, will receive 0.71 of a common share of LAC for every BIG common share they own. LAC shares recently traded at $9.25.
Analyst Peter Cavelti called the new LAC offer “acceptable” in his weekly Gold Mines Report. It values BIG shares at about US$6.30 compared with US$4.15 under the previous bid.
BIG shares, 65% of which were held by LAC before the transaction, will no longer be publicly held or registered under the Exchange Act and have ceased trading on the New York Stock Exchange.
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