Goldcorp (G-T) has declared its bid for Wheaton River Minerals (WRM-T) a success after 69% of the shares of Wheaton had been tendered to Goldcorp’s bid by the end of business Monday. It will now extend its bid period to month-end in order to catch the remaining shares.
Goldcorp’s bid of one Goldcorp share for four Wheaton shares was conditional on two-thirds of Wheaton’s shares being tendered to the offer by Feb. 14. It now plans to take up remaining shares at the terms of the offer by Feb. 28, and will move for a compulsory acquisition at a special meeting of Wheaton shareholders on April 12.
Wheaton shareholders will own 43% of the new company.
A special dividend of 62 (US50) for Goldcorp shareholders will now go ahead, in advance of the payout of shares to Wheaton shareholders.
Warrants for Wheaton shares — and there are three series trading on the Toronto Stock Exchange — will be exercisable for Goldcorp shares at the same ratio as the takeover exchange. The warrants, which are all exchangeable for one Wheaton share at their exercise prices, will be exchangeable at a ratio of four warrants for one Goldcorp share, at four times the exercise price.
Wheaton has 572 million shares outstanding, plus 55 million regular warrants (WRM.WT-T), 57 million Series A warrants (WRM.WT.A-T), and 64 million Series B warrants (WRM.WT.B-T). If all the warrants were exercised, they would represent 44 million Goldcorp shares issued for $383 million, or $8.71 per share. Goldcorp has 190 million shares outstanding.
Goldcorp shares were down 54 at $16.51 at presstime, while Wheaton shares were trading at $4.11, down 2.
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