Deals
Centerra to Buy Debt-Choked Thompson Creek for $1.1 Billion
- Stock-swap component of transaction worth about $135 million
- Royal Gold’s streaming stake on Mount Milligan to be amended
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Centerra Gold Inc. agreed to acquire Thompson Creek Metals Co. in a deal valued at $1.1 billion as the Toronto-based miner looks to expand in North America and reduce its dependence on Central Asia.
Each Thompson Creek share will be exchanged at 0.0988 a Centerra share, the companies said Tuesday in a statement. The ratio represents a 32 percent premium on closing prices Monday and values the exchange at about C$176 million ($135 million). Centerra will also redeem Thompson Creek’s $889 million in bonds plus interest, and take on $47 million in capital lease obligations.