September 29, 2016 / 12:52 PM / 2 years ago

Kirkland Lake Gold to take over Newmarket Gold in C$1 bln deal

Sept 29 (Reuters) - Kirkland Lake Gold Inc agreed to take over Newmarket Gold Inc in an all-stock deal valued at about C$1 billion ($764 million).

Kirkland Lake Gold will own about 57 percent of the combined company, which will be known as Kirkland Lake Gold, the companies said on Thursday.

Newmarket shareholders will own the rest of the shares.

Newmarket shareholders will receive 0.475 shares of the combined company for each share held. Kirkland Lake Gold shares will be exchanged at a ratio of 2.1053 Newmarket shares per Kirkland Lake Gold share, the companies said.

The exchange ratio implies consideration of C$5.28 per Newmarket share, a premium of 9.4 percent to Newmarket’s close on Wednesday, the companies said. ($1 = 1.3091 Canadian dollars) (Reporting by Arathy S Nair in Bengaluru)

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