Mergers & Acquisitions Report - December 10, 2021
This report provides a summary of gold funds that hold:
1) The acquirer: Kinross Gold Corp. (NYSE: KGC)
2) The acquired company: Great Bear Resources, Ltd. (TSX-V: GBR)
3) Both Acquirer and Acquiree.
Kinross Gold Corp. Acquires Great Bear Resources, Ltd. in $1.8B Transaction
Great Bear Resources Ltd. (TSX-V: GBR) “Great Bear” has entered into a binding agreement with Kinross Gold Corp. (TSE: K, NYSE: KGC) “Kinross” under which Kinross has agreed to acquire all the outstanding common shares of Great Bear. Great Bear shareholders will receive upfront consideration of approximately C$1.8 billion, representing $29 per Great Bear common share on a fully diluted basis. The transaction price represents a premium of 31% (31 percent) to the closing price of Great Bear's shares on the TSX-V for the 20-day period ended Dec. 7, 2021.
Great Bear shareholders will also receive contingent consideration in the form of contingent value rights (CVRs) providing for further potential consideration equal to 0.1330 of a Kinross common share for each Great Bear common share. This represents approximately C$58.2 million in aggregate consideration, or C$1 per Great Bear common share, on a partially dilute basis (based upon the closing price of a Kinross common share on the Toronto Stock Exchange as at Dec. 7, 2021).
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Report prepared by:  Justin Verdon, Analyst
Christopher J. Berlet BSc, CFA
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