Dundee (DC-A.TO) on Monday said it supports OceanaGold's (OGC.TO) acquisition of Ausgold for A$776 million, saying the deal provides Ausgold shareholders with an attractive premium and future upside.
Dundee currently owns about 42.5-million Ausgold shares and 3.3 million warrants for an approximate 7.7% interest in the company on an undiluted basis and an 8.3% stake on a partially diluted basis, the company said.
"This transaction demonstrates the value of patient investment in quality assets and delivers a compelling outcome for shareholders," Dundee chief executive Jonathan Goodman said.
OceanaGold said earlier on Monday it is offering Ausgold shareholders 0.03365 of its shares for each Ausgold share held, implying a total offer value of A$1.36 per Ausgold share. Ausgold shareholders may also elect to receive the consideration value in cash.
Dundee shares were last seen up C$0.11, or 2.8%, to C$4.09 on the
Price: $4.09, Change: $+0.11, Percent Change: +2.76%