IAMGOLD Corp (USA) (NYSE:IAG) announced that IAMGOLD’s simplified public tender offer (the “Offer”) for EURO Ressources S.A. (“EURO”) commenced on November 16, 2015 is closed. The Offer was to acquire all of the outstanding common shares of EURO that IAMGOLD did not already own for cash consideration of €2.84 per share.
In conjunction with the conclusion of the Offer, IAMGOLD acquired ownership and control of an aggregate of 1,021,647 common shares of EURO representing approximately 1.6% of the issued and outstanding common shares of EURO (the “Common Shares”) based on 62,491,281 Common Shares issued and outstanding as of September 30, 2015 as stated by EURO in its management discussion & analysis for the third financial quarter ended September 30, 2015 (“Outstanding Common Shares”). After giving effect to this acquisition, and together with other Common Shares acquired through the Euronext Paris market since submission of the draft Offer to the French Autorité des Marchés Financiers, IAMGOLD beneficially owns and controls an aggregate of 56,058,191 Common Shares, representing approximately 90% of the Outstanding Common Shares of EURO (from 86% prior to the Offer).
The acquisition of Common Shares of EURO by IAMGOLD under the Offer was for investment purposes and is consistent with the Company’s strategic goal of optimizing its Rosebel gold mining operation.
IAMGOLD does not have any present intention to acquire ownership of, or control over, additional securities of EURO. It is the intention of IAMGOLD to evaluate its investment in EURO on a continuing basis and such holdings may be increased or decreased in the future. IAMGOLD does not intend to file a new tender offer for securities of EURO, and reserves the right to commence proceedings to delist the Common Shares of EURO from Euronext Paris.
The value in Canadian dollars of the consideration paid by IAMGOLD per Common Share of EURO acquired on December 16, 2015, was C$4.29 (€2.84), calculated on the basis of the noon exchange rate on that date. The Offer was made pursuant to French securities laws and was exempt from take-over bid requirements of Canadian securities laws.
In accordance with National Instrument 62-103 and Section 102.1 of the Securities Act (Ontario), IAMGOLD has issued this news release and is concurrently filing an early warning report. (Original Source)
Shares of IAMGOLD are trading at $1.34, down $0.09 or -6.62%. IAG has a 1-year high of $3.39 and a 1-year low of $1.15. The stock’s 50-day moving average is $1.54 and its 200-day moving average is $1.73.
On the ratings front, IAMGOLD has been the subject of a number of recent research reports. In a report issued on November 25, Morgan Stanley analyst Brad Humphrey initiated coverage with a Sell rating on IAG and a price target of $1.35, which represents a slight downside potential from current levels. Separately, on November 24, HSBC’s Botir Sharipov upgraded the stock to Hold and has a price target of $1.60.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brad Humphrey and Botir Sharipov have a total average return of -10.7% and 17.4% respectively. Humphrey has a success rate of 43.8% and is ranked #3236 out of 3645 analysts, while Sharipov has a success rate of 80.0% and is ranked #1240.
Iamgold Corp is a gold mining company. The Company explores, develops and operates gold mining properties. It also operates the niobium mine.