Canadian gold mining company Agnico Eagle Mines has told shareholders to reject an unsolicited mini-tender offer made by TRC Capital Investment.
The mini-tender offer is to purchase up to two-million Agnico Eagle common shares, or about 0.44% of the company’s outstanding common stock, at a price of C$64 a share.
The offer, Agnico Eagle said in a statement on Friday, represented a discount of about 4.51% and 4.48% to the closing price of the company’s shares on the TSX and NYSE, respectively, on June 7 – the last trading day before the mini-tender offer was recommended.
The miner noted that mini-tender offers were designed to seek less than 5% of a company's outstanding shares, avoiding disclosure and procedural requirements applicable to most bids under Canadian and US securities regulations. Both the Canadian Securities Administrators and the US Securities and Exchange Commission have expressed concerns about mini-tender offers.
TCR Capital has made similar unsolicited mini-tender offers for shares of other public companies.
Shareholders who have tendered their shares can withdraw their shares before 12:01 am (Toronto time) on July 8.