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Goldcorp Inc. (TSX:G,NYSE:GG) announced plans to sell its 26-percent stake in Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) for C$998.5 million via a secondary share sale.
Goldcorp Inc. (TSX:G,NYSE:GG) announced plans to sell its 26-percent stake in Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) for C$998.5 million via a secondary share sale.
GMP Securities LP and BMO Capital Markets will act as joint bookrunners on behalf of a syndicate of underwriters. In total, 58,051,692 common shares of Tahoe will be sold at C$17.20 each.
As quoted in the press release:
The Offering represents the sale of all of Goldcorp’s interest in Tahoe. Tahoe will not receive any of the proceeds from the Offering.
The Common Shares to be sold under the Offering will be offered by way of a short form prospectus in all of the provinces and territories of Canada and will be offered in the United States pursuant to a prospectus filed as part of a registration statement filed under theCanada/U.S. multi-jurisdictional disclosure system. A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted inthe United States prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The Offering is scheduled to close on or about June 30, 2015 and is subject to certain customary closing conditions including, but not limited to, the receipt of all necessary approvals.
Chuck Jeannes, president and CEO of Goldcorp, commented:
Divesting non-core assets has been instrumental to Goldcorp’s growth and consistently sound financial position, and the sale of the Tahoe position supports that strategy. With our gold production to date tracking well toward 2015 guidance, Goldcorp is positioned for growing free cash flow and financial flexibility.
Click here to read the full Goldcorp Inc. (TSX:G,NYSE:GG) press release.