Goldcorp to sell Tahoe Resources stake in C$1 billion deal
(Reuters) - Goldcorp Inc (G.TO: Quote) will sell its 25.6 percent stake in Tahoe Resources Inc (TAHO.N: Quote) for C$998.5 million ($811.26 million) in a bought deal, the two precious metals producers said on Monday.
GMP Securities and BMO Capital Markets will act as joint bookrunners on the deal, which will involve the sale of Goldcorp's 58 million Tahoe shares at a price of C$17.20.
In a bought deal, an investment bank commits to buying the entire offering from the seller. The bank will then typically onsell the stock to other investors.
The offer is scheduled to close around June 30.
Vancouver-based Goldcorp acquired its stake in Tahoe in 2010 when it sold its Escobal silver deposit in Guatemala to Tahoe. Tahoe, which is headed by Kevin McArthur, Goldcorp's former chief executive, paid for the deposit in cash and Tahoe shares.
Goldcorp originally held a 40 percent stake in Tahoe but that was recently diluted to 25.6 percent when Tahoe issued shares to pay for the purchase of Rio Alto Mining Ltd in February this year.
Tahoe's stock closed up 3 percent at C$15.01 on the Toronto Stock Exchange on Monday.
Goldcorp's stock ended down 0.78 percent at C$20.56.