Franco-Nevada to own Redstone

Royalty company Franco-Nevada Mining (TSE) wants to acquire all of the common shares of Redstone Resources (TSE) that it does not already own.

Franco has offered Redstone shareholders one Franco-Nevada common share for every 20 shares of Redstone. At the last close before the offer, Franco shares were trading at $78, while those of Redstone were listed at $3.

Franco-Nevada already owns more than 7 million Redstone shares, representing about 32% of those that are outstanding. In addition, several Redstone shareholders have entered into lock-up agreements with Franco-Nevada to tender another 6.4 million shares, representing another 29.5% of Redstone’s outstanding shares.

The offer is conditional on no less than 90% of the outstanding shares (excluding those owned by Franco-Nevada) being tendered prior to the expiry of the offer, expected by mid-January 1996.