Yamana Gold To Buy Monarch: One Winner

Summary

Yamana Gold has reached a friendly agreement to buy Monarch Gold.

The price is C$152 million and a 43% premium to Monarch’s share price as on Friday, October 30.

The deal undervalues Monarch’s assets, and I wouldn’t be surprised to see a competing bid emerge, as I explain below. Note: This article was originally published to subscribers on November 2, 2020. Gold M&A activity is heating up as mid-tier gold miner Yamana Gold ( AUY ) has agreed to buy gold developer Monarch Gold ( OTCQX:MRQRF ) for a total consideration of C$200 million, or C$.63 per share, representing a 43% premium to Monarch stock price as of closing on last Friday, October 30.In connection with the takeover, Monarch will spin out other assets into a new company with a cash balance of C$14 million.Following completion of the spin-out, each Monarch share will be exchanged for the following: > C$0.192 in […]

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