Gold Wheaton Gold Corp GLW:CA announced that it has entered into a binding letter agreement whereby Franco-Nevada Corporation FNV:CA will acquire all of the outstanding common shares of Gold Wheaton for total consideration of approximately $830 million payable as to 60% in shares and 40% in cash. Under the arrangement each Gold Wheaton Share will be exchanged for consideration consisting of 0.0934 of a common share in the capital of Franco-Nevada and cash in the amount of $2.08 per Gold Wheaton share.
Gold Wheaton Chairman/CEO David Cohen commented, “Gold Wheaton has grown from an idea conceived only two and a half years ago, through the period of substantial fiscal crisis into a company that will generate well over $110 million in cash flow in 2011. The combination with Franco-Nevada provides our shareholders with premium value and liquidity for their shareholding in Gold Wheaton and continued exposure to gold in an exceptionally well financed vehicle. The addition of the Gold Wheaton cash flow will position Franco-Nevada as the clear leader in the gold royalty sector.”
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Gold Wheaton Gold Corp
by Ted Niles