IAMGOLD Announces Regulatory Approval in France of Buy-Out Offer for Euro Ressources
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Insights
The acquisition of EURO Ressources S.A. by IAMGOLD Corporation represents a significant consolidation move within the mining sector. The buy-out offer at €3.50 per share suggests a strategic valuation of EURO's assets, which may reflect IAMGOLD's confidence in the underlying commodity prices or synergy potential. This transaction could lead to operational efficiencies and cost savings, potentially improving IAMGOLD's earnings in the long term. However, investors should consider the immediate cash outflow and any debt incurred to finance this acquisition, which could impact IAMGOLD's balance sheet.
Further, the market's reaction to the buy-out will be indicative of the perceived fairness of the offer price and the expected ease of integration. It is also essential to monitor the post-acquisition performance, as the anticipated benefits could take time to materialize and may be affected by external factors such as commodity price volatility and regulatory changes in the mining industry.
This transaction is likely to affect the competitive dynamics of the mining industry, especially in regions where IAMGOLD and EURO have overlapping operations. The buy-out could result in increased market share for IAMGOLD, potentially influencing commodity supply levels. Stakeholders should also consider the implications for the labor market and local economies, as mergers and acquisitions can lead to restructuring and changes in workforce requirements.
From a market perspective, the buy-out offer and subsequent squeeze-out indicate IAMGOLD's intent to streamline decision-making and integrate EURO's operations fully. This could be favorable for investors seeking more direct exposure to IAMGOLD's expanded asset portfolio. However, the market will need to assess whether the premium paid per EURO share justifies the expected returns from the acquisition.
The approval by Autorité des marchés financiers for IAMGOLD's buy-out offer is a key regulatory step that signals a green light for the transaction from a compliance standpoint. An economist would evaluate the broader economic implications, such as the impact on the supply-demand dynamics for the commodities produced by both companies. Additionally, the acquisition could have implications for trade balances, especially if the companies operate in jurisdictions with different export and import regulations.
Moreover, the squeeze-out process under French law will lead to the delisting of EURO's shares from the Euronext Paris stock exchange, consolidating IAMGOLD's ownership. This could potentially reduce market liquidity for EURO shares and affect minority shareholders. The long-term economic impact will depend on how effectively IAMGOLD integrates EURO's assets and whether the acquisition aligns with IAMGOLD's strategic growth objectives.
Toronto, Ontario--(Newsfile Corp. - January 24, 2024) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) ("IAMGOLD" or the "Company"), announced today that its wholly-owned subsidiary IAMGOLD France S.A.S. ("IAMGOLD France") has obtained approval from the Autorité des marchés financiers ("AMF") in France for its buy-out offer to acquire all of the outstanding common shares ("EURO Shares") of EURO Ressources S.A. ("EURO") that IAMGOLD France does not already own for cash consideration of €3.50 per EURO Share (the "Offer Price") to be followed immediately by a squeeze-out under French law (the "Offer"), as previously announced by the Company on November 14, 2023.
Before opening the Offer, the AMF and the Euronext Paris stock exchange ("Euronext") will each publish a notice announcing the date on which the Offer will open (each a "Notice"). Once opened, the Offer will remain open for 10 trading days. The Notices will be available on the websites of the AMF (www.amf-france.org) and Euronext (https://www.euronext.com/fr/markets/paris). EURO shareholders are urged to read the Notices because they contain important information about the Offer including, among other things, a timetable for the Offer and the dates on which the Offer will open and close.
An offer document and information on the legal, financial and accounting characteristics of IAMGOLD France supplementing the offer document, prepared in accordance with French law and approved by the AMF, disclosing, among other things, the terms of, and proposed timetable for, the Offer as well as certain legal, financial and accounting information concerning IAMGOLD France are available on the websites of IAMGOLD (www.iamgold.com) and the AMF (www.amf-france.org), and under EURO's profile on SEDAR+ (www.sedarplus.ca). The IAMGOLD website does not constitute a part of, and is not incorporated by reference into, the offer document or any of the other mentioned documents.
IAMGOLD has appointed Natixis as its Financial Advisor, Presenting and Guaranteeing Bank for the Offer. In connection with the Offer, Norton Rose Fulbright LLP is acting as French counsel to IAMGOLD and Fasken Martineau DuMoulin LLP is acting as Canadian legal counsel to IAMGOLD.
Important Notice
This news release does not constitute and should not be construed as a public offer to buy, or the solicitation of an offer to sell, EURO's securities. The Offer, which was approved by the AMF, is made solely on the basis of the offer document approved by the AMF which is available on the AMF website (www.amf-france.org). In accordance with French law, the documentation relating to the Offer which has been filed with the AMF includes the terms and conditions of the Offer. The offer document has not been filed with, or approved or disapproved by, the authorities of any jurisdiction other than France.
EURO shareholders are urged to read the offer document because it contains important information about the Offer, EURO and IAMGOLD. EURO shareholders are advised to seek independent advice where appropriate in order to reach a reasoned judgment in respect of the Offer and the content of the offer document. In addition, EURO shareholders may wish to consult with their tax advisors regarding the tax consequences of tendering their EURO securities under the Offer.
The Offer referred to herein will not be made or directed to, nor will deposits of EURO shares be accepted from or on behalf of, shareholders in any jurisdiction in which the making or acceptance of such offer would not be in compliance with the laws of such jurisdiction. Persons obtaining the offer document are required to take due note of, and to observe, all such restrictions and obtain any necessary authorizations, approvals or consents (to the extent applicable). Persons in any doubt as to their eligibility to participate in the Offer should consult their professional advisers immediately. Outside of France, no actions have been taken (nor will actions be taken) to make the Offer possible in any jurisdiction where such actions would be required. Any person (including, without limitation, custodians, nominees and trustees) who forwards or intends to forward the offer document or any related document to any jurisdiction outside France should carefully read the offer document before taking any action. The release, publication or distribution of the offer document and any documentation regarding the Offer or the making of the Offer in jurisdictions other than France may be restricted by law and therefore persons into whose possession the offer document comes should inform themselves about and observe such restrictions.
The Offer will be made in Canada and the United States pursuant to applicable exemptions and in accordance with the applicable requirements in France. Accordingly, the Offer is subject to disclosure and other procedural requirements, including but not limited to offer timetable, settlement procedures and timing of payments, that are different from those in Canada and the United States applicable to tender offers for securities of a reporting issuer.
About Euro Ressources
Euro Ressources is a French mining royalty and streaming company listed on the Euronext Paris stock exchange under the symbol EUR. EURO's main assets are a
About IAMGOLD
IAMGOLD is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. IAMGOLD is building the large-scale, long life Côté Gold project in Canada in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to commence production in the first quarter of 2024. In addition, IAMGOLD has an established portfolio of early stage and advanced exploration projects within high potential mining districts in Canada. IAMGOLD employs approximately 3,600 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance practices, including its commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange (NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG) and is one of the companies on the Jantzi Social Index, a socially screened market capitalization-weighted consisting of companies which pass a set of broadly based environmental, social and governance rating criteria. IAMGOLD's head office is located at 401 Bay Street, Suite 3200, P.O. Box 153, Toronto, ON, CA, M5H 2Y4.
IAMGOLD Contact Information
Graeme Jennings, Vice President, Investor Relations
Tel: 416 360 4743 | Mobile: 416 388 6883
Toll-free: 1 888 464 9999
info@iamgold.com
All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le www.iamgold.com/French/accueil/default.aspx.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/195404
FAQ
What is the buy-out offer price for EURO Shares by IAMGOLD France?
How long will the Offer remain open?
Where can EURO shareholders find important information about the Offer?
