Triple Flag to buy peer Maverix Metals in $600 mln deal

Triple Flag Precious Metals

10/11/2022 12:11

Nov 10 (Reuters) - Triple Flag Precious Metals Corp
 TFPM.TO  said on Thursday it would buy smaller peer Maverix
Metals Inc  MMX.TO  in a deal valued at $606 million to cement
its position as the fourth-largest senior streaming and royalty
company globally.
    The company said it expects the deal to add to its net asset
value as well as cash flow per share.
    Streaming and royalty firms provide financing for
exploration and development to precious metals producers in
return for a cut in any future output.
    Maverix stockholders may elect 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 last close.
    The deal 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 a $24 million termination fee.
       The combined company will continue as Triple Flag
Precious Metals Corp, headquartered in Toronto, with Geoff
Burns, founder and chair of Maverix, and another nominee of
Maverix expected to join the Triple Flag board.
    U.S.-listed shares of Maverix rose 3.6% in premarket trade,
while Triple Flag stock was flat.
 (Reporting by Ankit Kumar;
Editing by Vinay Dwivedi)
 ((Ankit.Kumar2@thomsonreuters.com;))