Business
Franco-Nevada and Gold Wheaton Agree to Friendly Business Combination
Franco-Nevada and Gold Wheaton Agree to Friendly Business Combination
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\n\n Dec. 13, 2010 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\n\nThis press release contains forward-looking statements. Reference should be made to the "Cautionary Statement on Forward-looking Information" at the end of this\n press release.\n\n\nTORONTO, Dec. 13 /CNW/ - Franco-Nevada Corporation (TSX - FNV)\n ("Franco-Nevada" or the "Company") announced today that it and Gold\n Wheaton Gold Corp. ("Gold Wheaton") have agreed to a friendly business\n combination whereby Franco-Nevada will acquire Gold Wheaton for\n approximately C$830 million in cash and shares.\n\n\nUnder the terms of a binding letter agreement, the transaction will be\n structured as a Plan of Arrangement, and Gold Wheaton's common\n shareholders will receive C$5.20 per share, payable 60% in shares and\n 40% in cash. This represents a premium of 19% to the closing price of\n Gold Wheaton's shares on the TSX on December 10, 2010, a 23% premium\n based on the 20-day volume weighted average trading price of Gold\n Wheaton's shares on the TSX, and a 35% premium to the closing price of\n Gold Wheaton's shares on November 9, 2010 (C$3.84), the day before\n Quadra FNX Mining Ltd. ("Quadra FNX") publicly indicated that its 34.5%\n block of Gold Wheaton shares was a non-core asset.\n\n\nDavid Harquail, President & CEO of Franco-Nevada, said "The acquisition\n of Gold Wheaton materially increases the exposure and leverage of\n Franco-Nevada shareholders to increa...