Aurizon Mines (ARZ.TSX, AMEX:AZK) was the recipient on Monday of an unsolicited takeover bid from Alamos Gold (AGI.TSX) for approximately C$780 million in cash and stock. Alamos noted that the offer will remain open until February 19, 2013 unless withdrawn or extended.
Under the terms of offer, Alamos proposes to acquire all of the outstanding common shares of Aurizon for consideration value of C$4.65 per share. Each Aurizon shareholder can elect to receive either C$4.65 in cash or 0.2801 of an Alamos share, subject in each case to pro-ration based on a maximum cash consideration of C$305 million and maximum number of Alamos shares issued of 23.5 million.
* The offer represents a premium of approximately 40% based on the closing price of ARZ.TSX as of January 9, 2013
* As of today, Alamos owns more than 16% of the issued and outstanding shares of Aurizon
* As of 11am ET, Aurizon has not responded publicly to Alamos’ bid
* Aurizon Mines is a Canadian-based gold producer with eight properties in Quebec – including the Casa Berardi mine, the advanced stage gold development property of the Heva and Hosco West Extension areas, and a growing project pipeline
John McCluskey, President and CEO of Alamos Gold:
“We believe that our Offer presents an attractive alternative for Aurizon shareholders. In addition to the Aurizon Shares we recently acquired, shortly before announcing our Offer, we approached a select few major institutional holders of Aurizon Shares. Each of these holders was supportive of us making the Offer. This response adds to our confidence that our Offer is attractive to Aurizon shareholders. We believe the combined companies will form one of the strongest and lowest risk production and growth profiles in the gold sector today.”
Paolo Lostritto, National Bank Financial:
“While we view the offer as providing reasonable value, there appears to be room for a subsequent sweetened offer if needed.”