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Writing for the Financial Post, Peter Koven suggested that Osisko Gold Royalties (TSX:OR) could be attractive as a takeover target given yesterday’s purchase of Virginia Mines (TSX:VGQ). The company’s new higher market cap – slated to be north of $1 billion – will make Osisko tempting for other large royalty firms.
Writing for the Financial Post, Peter Koven suggested that Osisko Gold Royalties (TSX:OR) could be attractive as a takeover target given yesterday’s purchase of Virginia Mines (TSX:VGQ). The company’s new higher market cap – slated to be north of $1 billion – will make Osisko tempting for other large royalty firms.
As quoted in the publication:
On Monday, the Montreal-based company announced a deal to buy Virginia Mines Inc. and its lucrative royalty on the Éléonore gold mine. That will move Osisko’s market cap over $1-billion and make it a logical target for the mining industry’s biggest royalty firms, said TD Securities analyst Carey MacRury.
MacRury said in a note:
The combined company would have all of the characteristics that should attract bidders — high-quality revenue streams, long life assets, low political risk profile, senior producer operators, and taking out Osisko would have the benefit of eliminating a well-funded competitor in the royalty space.