Franco-Nevada Corp. (FNV.T) plans a C$6.75-a-share takeover
offer for fellow royalty company, International Royalty Corp.
(ROY).
News of the offer came late Sunday and sent International
Royalty shares soaring in pre-market trading. It closed Friday in
Toronto at C$4.71; in pre-market trading Monday, it's at
C$6.60.
The offer represents a 54% premium over the 20-day weighted
average trading price of International Royalty in Toronto and is
43% above Friday's closing price.
Franco-Nevada said it plans to mail a takeover bid circular
shortly and expects the deal could close as early as mid-to-late
January. BMO Capital Markets is acting as financial adviser to
Franco-Nevada.
Separately, Denver's International Royalty said it's aware of
Franco-Nevada's planned offer and will meet with legal and
financial advisers to consider an appropriate response.
Franco-Nevada, a gold-focused royalty company based in Toronto,
recently announced plans to buy Moydow Mines International Inc.
(MOY.T) and its 2% net smelter returns royalty on a portion of
Newmont Mining Corp.'s (NEM) Ahafo gold mine in Ghana for about
US$58 million.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com