News AP
IAMGold to Buy Cambior for $1.3B
Thursday September 14, 8:01 am ET
IAMGold to Buy Cambior for $1.3 Billion in Stock; Company to Have $3 Billion Market Cap
NEW YORK (AP) -- Canada's IAMGold Corp. said Thursday it is buying fellow Canadian miner Cambior Inc. for $1.3 billion in stock to create a gold producer with a market capitalization of $3 billion.
The combined company would produce 1.1 million ounces of gold per year with reserves totaling 9.7 million ounces, according to Toronto-based IAMGold
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Under terms of the deal, Cambior shareholders would receive 0.42 shares of IAMGold for each share of Cambior they own.
The deal values Longueuil-based Cambior at 4.83 Canadian dollars ($4.31) per share and has been approved by the boards of both companies. Cambior shareholders are expected to vote on the buyout no later than early November, needing approval by holders of 75 per cent of its stock.
Current IAMGold shareholders would own about 57 percent of the combined company with current Cambior shareholders owning 43 percent.
If the deal is not completed, Cambior has agreed to pay IAMGold a breakup fee of 45 million Canadian dollars ($40.2 million).
Shares of Cambior jumped 79 cents, or 24.2 percent to $4.05 in electronic pre-market trading on the INET after closing Wednesday at $3.26 on the American Stock Exchange
