Kirkland Lake buying Detour Gold in stock deal worth $3.7-billion

Canada’s Kirkland Lake Gold (TSX, NYSE: KL) (ASX:KLA) is buying smaller rival Detour Gold in an all-stock deal worth C$4.9 billion ($3.7 billion) that boost the already large list of mergers and acquisitions to have swept the sector this year.

Kirkland is offering 0.4343 shares to Detour Gold shareholders for each share held, which represents a premium of 23.8% to Friday’s closing price.

The deal, which will help the Toronto-based miner scale up its operations and boost reserves, is expected to generate pre-tax savings of about $75 to $100 million per year, the companies said in the statement.

Once the transaction is completed, Kirkland Lake Gold and Detour Gold shareholders will own about 73% and 27%, respectively, of the merged company.

More to come…

from MINING.COM https://ift.tt/2KT186M