Canadian banks selling shares of Tahoe Resources Inc. cut the price on a secondary offering after the shares slumped.
The stock is now being offered at C$16.80 a share, or 2.3 percent lower than its initial price of C$17.20 a share, according to sale documents. The offering is now worth C$975.3 million ($797 million).
Goldcorp Inc., the world’s largest gold producer by market value, on Monday agreed to sell 58.05 million shares in Tahoe, representing its entire 26 percent stake. The stock closed Monday at C$18.49, before the sale was announced. Shares of Reno, Nevada-based Tahoe have since traded as low as C$16.39 in Toronto and closed Thursday at C$16.97.
GMP Capital Inc. and Bank of Montreal are leading a group of banks on the so-called bought deal. In a bought deal, banks managing the sale are left holding any unsold shares.