Aurizon Mines (ARZ.TSX, AMEX: AZK) responded to Alamos Gold’s unsolicited bid, announced yesterday, to acquire the Canadian-based gold producer for 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 Alamos noted that the offer will remain open until February 19, 2013 unless withdrawn or extended.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 the offer, Alamos Gold proposed to acquire all of the outstanding common shares of Aurizon Mines 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.
Highlights:
* Aurizon noted that it is in the process of reviewing and evaluating Alamos’ offer with its financial and legal advisors
* Aurizon expects that a special committee of the Board of Directors of the Company will be appointed to assist the Board in fulfilling its legal and fiduciary duties in respect of the offer and making every effort to maximize value for the benefit of Aurizon’s shareholders and other stakeholders
* The Company recommended that its shareholders defer taking any action in respect of the offer until the Board of Directors of the Company makes a recommendation as to the merits of the Alamos offer
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.”
