Alamos To Acquire The Issued And Outstanding Shares Of Argonaut Pursuant To a Court Approved Plan Of Arrangement
Portfolio Pulse from Benzinga Newsdesk
Alamos Gold Inc. (AGI) has announced its plan to acquire Argonaut Gold Inc. through a court-approved plan of arrangement. Each Argonaut share will be exchanged for 0.0185 Alamos shares and 1 share of SpinCo2, valuing Argonaut at approximately US$325 million. This deal represents a 34% premium based on the closing prices of both companies on the TSX as of March 26, 2024, and a 41% premium based on their 20-day volume-weighted average prices. Alamos is expected to issue around 20.3 million common shares, equating to an equity value of about US$276 million and an enterprise value of US$516 million.
March 27, 2024 | 12:22 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Alamos Gold Inc. (AGI) plans to acquire Argonaut Gold Inc., valuing Argonaut at US$325 million. The transaction involves issuing approximately 20.3 million Alamos shares, representing an equity value of about US$276 million.
The acquisition of Argonaut by Alamos is a significant strategic move, likely to be viewed positively by the market due to the premium paid and the potential for synergies between the two companies. The issuance of new shares could dilute existing shareholders but the overall positive outlook of the merger, including the premium paid and the strategic fit, is expected to have a positive short-term impact on Alamos' stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100