Goldcorp???s Offer to Buy Exeter Shares Approved, Term Extended

Goldcorp Inc. GG declared that the offer to acquire all issued and outstanding shares of Exeter Resource Corporation has been accepted by the shareholders of the latter representing around 80.5% of total outstanding shares or 74,992,886 Exeter Shares.

The company has also extended the period during which Exeter Shares may be deposited under the offer. Shareholders of Exeter are now required to deposit their shares under the offer on or before Jun 20, which is the mandatory extension period, unless further extended.

On Apr 20, Goldcorp declared that it has commenced an offer, supported by the board of Exeter, to purchase all the issued and outstanding shares of Exeter. Shareholders will be entitled to receive 0.12 of a common share of Goldcorp for each Exeter common share held, representing a premium of 67% based on Goldcorp's and Exeter's closing prices on the Toronto Stock Exchange as of Mar 27.

The total consideration being offered for the issued and outstanding shares of Exeter is around $247 million (fully diluted basis). Following the payment and take up, Goldcorp will own and control the 74,992,886 Exeter Shares, representing around 80.5% of the issued and outstanding shares, on a non-diluted basis. Prior to this payment, Goldcorp did not own any Exeter Shares.

Goldcorp’s shares have lost around 4.2% in the last three months, underperforming the Zacks categorized Mining–Gold industry’s 12.2% gain.

View photos