Precious metals miner Pan American’s Yamana Gold acquisition plans have received the backing of ISS and Glass Lewis, with both proxy advisory firms recommending that the company’s shareholders vote in favour of the arrangement at an upcoming meeting.
Pan American is proposing to buy Yamana Gold, following the sale by Yamana of its Canadian assets, including its interests in the Canadian Malartic mine, to Agnico Eagle Mines.
Glass Lewis, in its recommendation, states that Pan American has presented investors with a sound case for support. “In particular, we are inclined to share the board's view that the deal secures additional, complementary and prospectively attractive Latin American assets."
ISS states: "There appears to be sound strategic rationale for the transaction which carries terms that are the result of a reasonable process, and ultimately joint offer, which should result in a more optimal combination of assets to enhance shareholder value. The deal is anticipated to be immediately accretive, has quantifiable synergy goals, and satisfies a longer term objective of delivering a material enhancement to the company's scale."
Pan American shareholders will meet on January 31 in Vancouver to consider the resolution to authorise the issuance of shares to Yamana as consideration in respect of the arrangement.