IAMGOLD Completes Acquisition of EURO Ressources
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Insights
The acquisition of EURO Ressources S.A. by IAMGOLD Corporation represents a strategic consolidation within the mining sector. The financial outlay of approximately €21.87 million underscores IAMGOLD's commitment to expanding its asset portfolio. This transaction may potentially lead to operational synergies, as IAMGOLD can streamline processes and reduce costs by integrating EURO's assets. From an investor's perspective, the key points of interest will be the impact of the acquisition on IAMGOLD's earnings per share, the return on investment and how the consolidation affects the company's market position relative to its competitors.
Furthermore, the delisting of EURO Shares from the Euronext Paris and the subsequent cessation of EURO as a reporting issuer could imply a reduction in administrative overhead and a more focused strategic direction. However, it is crucial to monitor IAMGOLD's post-acquisition integration process as it could pose risks if not managed efficiently, potentially affecting the company's stock performance in the short to medium term.
The mining industry is often characterized by the need for large capital investments and economies of scale. IAMGOLD's acquisition of the remaining 10% of EURO Ressources S.A. shares it did not already own allows for complete control over EURO's resources, which could lead to increased market power and potentially higher barriers to entry for competitors. This acquisition might also signal a bullish outlook on the commodities EURO is involved with, suggesting IAMGOLD's anticipation of rising demand or prices.
Market consolidation, such as this, typically invites scrutiny regarding its impact on competition. It is important to analyze future moves by IAMGOLD in terms of exploration and development strategies, as well as how the market reacts to this consolidation, particularly in terms of the stock price movement of IAMGOLD and its competitors in the days following the announcement.
The transaction followed a buy-out offer and a squeeze-out in compliance with French law, highlighting the legal complexities associated with cross-border acquisitions. The involvement of financial and legal advisors, Natixis and Norton Rose Fulbright LLP respectively, suggests that IAMGOLD navigated through a structured regulatory framework to ensure a smooth transaction. This adherence to protocol is crucial in mitigating legal risks and ensuring shareholder confidence.
With the acquisition receiving approval from the Autorité des marchés financiers (AMF), IAMGOLD has demonstrated its ability to fulfill regulatory obligations, a critical factor for investors who are often concerned about the regulatory risks associated with such transactions. The cessation of EURO as a reporting issuer in Canada may also simplify regulatory compliance and reduce reporting burdens going forward.
Toronto, Ontario--(Newsfile Corp. - February 27, 2024) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) ("IAMGOLD" or the "Company") announced today that it has completed, through its wholly-owned subsidiary IAMGOLD France S.A.S. ("IAMGOLD France"), the acquisition of all of the outstanding common shares ("EURO Shares") of EURO Ressources S.A. ("EURO") (other than the EURO Shares already owned by IAMGOLD France) (the "Acquisition").
The Acquisition was effected by way of IAMGOLD France's buy-out offer followed by a squeeze-out in accordance with French law (the "Offer"), which was approved by the Autorité des marchés financiers ("AMF") on January 23, 2024. Pursuant to the Offer, IAMGOLD, through IAMGOLD France, acquired 6,249,128 EURO Shares, representing approximately
The purpose of the Offer was to enable IAMGOLD to acquire, through IAMGOLD France, all of the outstanding EURO Shares. Prior to the Acquisition, IAMGOLD, through IAMGOLD France, beneficially owned and controlled 56,242,153 EURO Shares, representing approximately
The EURO Shares have been delisted from the Euronext Paris stock exchange today. Following the delisting, EURO will submit an application to the applicable securities regulators in Canada to cease to be a reporting issuer.
IAMGOLD 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, was 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 was 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.
For additional information regarding the Offer, please refer to the news releases published by the Company on November 14, 2023, January 24, 2024 and February 13, 2024.
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 150 King Street West, Suite 2200, Toronto, Ontario M5H 1J9.
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.
1 All amounts expressed in Canadian dollars are calculated on the basis of the exchange rate published by the Bank of Canada on February 26, 2024, being 1.4661.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199499
FAQ
What percentage of EURO Shares did IAMGOLD acquire?
At what price per share did IAMGOLD acquire EURO Shares?
What is the total consideration for the acquisition of EURO Shares by IAMGOLD?
After the acquisition, what percentage of EURO Shares does IAMGOLD now own?
What led to the delisting of EURO Shares from the Euronext Paris stock exchange?
