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11/17/14

Osisko and Virginia play stone soup

Can't blame them, either, Here's the NR, here's the moneyshot:

Under the terms of the transaction, which is structured as a Plan of Arrangement, each Virginia share will be exchanged for 0.92 Osisko shares (the "Arrangement Consideration"). The Arrangement Consideration represents consideration to Virginia shareholders of C$14.19 per Virginia share based on the closing price of Osisko common shares of C$15.42 per share on the Toronto Stock Exchange as at November 14, 2014. This value implies a 41% premium to the closing price of Virginia shares on November 14, 2014, and a 27% premium to Virginia based on both companies' 30-day VWAPs ending November 14, 2014.
Upon completion of the combination, existing Osisko and Virginia shareholders will own approximately 61% and 39% of the combined company pro forma the concurrent private placements by la Caisse de depot et placement du Quebec ("CDPQ") and le Fonds de solidarite FTQ (the "Fonds"), respectively, on a basic basis.

Pierre, you watching? There's something new to buy that isn't Sandstorm, Pierre.

UPDATE: So far this morning (and there are still two hours to go before the opening bell), Osisko has announced 1) the all-paper buyout of Virginia 2) the start of a new dividend policy and 3) a share buyback. Betcha the anal ysts that cover this one are glad they have computers these days.