Royalty firm Triple Flag to buy peer Maverix Metals in $600 mln deal (updated)

Triple Flag Precious Metals

10/11/2022 14:12

(Adds details, updates shares)
       Nov 10 (Reuters) - Triple Flag Precious Metals Corp
 TFPM.TO  said on Thursday it would buy peer Maverix Metals Inc
 MMX.TO  in a royalty sector deal pegged as the biggest in North
America. 
    The company said the deal, valued at $606 million, would
cement its position as the fourth-largest senior streaming and
royalty company globally. These firms provide financing for
exploration and development to precious metals producers in
return for a cut in any future output.
    Elliott Investment Management LP, which owns 83% of Triple
Flag, as well as key Maverix shareholders Newmont Corp  NEM.N ,
Pan American Silver Corp  PAAS.TO  and Kinross Gold Corp  K.TO 
are all in favor of the deal.
    Top gold miner Newmont and Pan American along with the
officers and directors of Maverix own about 57% of the company's
stock.
    Triple Flag said it expects the deal to add to its net asset
value as well as cash flow per share.
    Maverix stockholders can choose to receive either $3.92 in
cash, or 0.360 of a Triple Flag share for each share held,
implying a premium of 10% to Maverix's last close.
    U.S.-listed shares of Maverix rose 7.6% in premarket trade,
while Triple Flag stock was flat.
    The transaction is expected to be completed in January 2023,
after which Triple Flag and Maverix shareholders would own about
77% and 23%, respectively, of the combined company.
    The agreement allows Triple Flag to match superior proposals
and includes a $24 million termination fee.
    The company will continue as Triple Flag Precious Metals
Corp, headquartered in Toronto, with Geoff Burns, founder and
chair of Maverix, and another nominee of the firm expected to
join the Triple Flag board.
 (Reporting by Ankit Kumar;
Editing by Vinay Dwivedi)
 ((Ankit.Kumar2@thomsonreuters.com;))