On September 11, 2017, Richmont Mines Inc. (“Richmont”) announced that it has entered into an agreement with Alamos whereby Alamos will acquire all of the outstanding and issued shares of Richmont pursuant to a plan of arrangement. Under the terms of the agreement, all of the Richmont shares will be exchanged on the basis of 1.385 Alamos shares for each Richmont share. This implies a total equity value of approximately US$770 million on a fully diluted basis and an enterprise value of US$683 million. Once the transaction is complete, Alamos and Richmont shareholders will own approximately 77% and 23% of the combined entity.
In addition to shareholder and court approvals, the transaction is subject to applicable regulatory approvals and the satisfaction of certain other closing conditions customary for a transaction of this nature.
Fasken Martineau is advising Richmont with a team that includes Brad Freelan, Brian Graves, John Turner, Frank Mariage, Janie Harbec, Myroslav Chwaluk, David Steinhauer, Mariko Rivers, Jeremy Mandel and Russell Lindzon (M&A), Alain Riendeau and Brandon Farber (Litigation), Huy Do (Competition) and Mitch Thaw (Tax).
