On Monday, BMO Capital Markets adjusted its stance on Osisko Mining (OSK:CN) (OTC: OBNNF), downgrading the stock from Outperform to Market Perform. The firm also revised its price target to C$4.90, a decrease from the previous C$5.75. This change comes in the wake of the company's agreement to be acquired by Gold Fields (NYSE:GFI) for C$4.90 per share, a move that reflects a 55% premium over the 20-day volume-weighted average price (VWAP).
The acquisition by Gold Fields, a company currently rated as Market Perform by BMO Capital Markets, is anticipated to be finalized in the fourth quarter of 2024. BMO Capital's adjustment of the price target for Osisko Mining to C$4.90 aligns with the proposed acquisition price offered by Gold Fields.
The transaction is seen positively by BMO Capital, which notes the strong cash bid underscores the value and rarity of Osisko Mining's Windfall deposit. The firm's recommendation has been updated to reflect the impending acquisition, which is expected to provide Osisko shareholders with a significant premium on their investment based on recent trading averages.
Investors and market watchers are now looking towards the expected closure of the deal in the latter part of 2024, which would see Osisko Mining become part of Gold Fields' portfolio. The acquisition is anticipated to bolster Gold Fields' position in the mining sector by adding the Windfall deposit to its assets.
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