Lukas Lundin, chairman of Lundin Mining Corp. and Lundin Gold Inc., poses for a photograph at the Prospectors and Developers Association of Canada (PDAC) convention at the Metro Toronto Convention Centre on Monday, March 2, 2015.
If at first you don't succeed, just add some sweetener. Case in point: Potash Corp. of Saskatchewan Inc. is not going to take "no" for an answer in its bid to acquire German rival K+S AG. While it is confident with its offer, the company may consider raising the bid so long as K+S can show additional value. But first, a well-known mining family is doing what it does best and did often late last year – acquire other mining companies and properties. And speaking of properties, we also have some leftover property deals from our last roundup.
DEAL OF THE DAY:
Lundin Family eyes mining prize in Fission Uranium
Denison Mines Corp. has agreed to buy Fission Uranium Corp. in a $500-million deal that will give the Lundin family control over a large uranium discovery in the Athabasca Basin.
Denison, which is controlled by mining tycoon Lukas Lundin, is offering the equivalent of $1.25 for every Fission share. Mr. Lundin will serve as chair of the combined company and Fission's top two executives, chief executive officer Dev Randhawa and chief operating officer Ross McElroy, will remain in the same positions at the new Denison.
The deal will allow Denison to consolidate uranium projects in northern Saskatchewan. Fission owns the Patterson Lake South Project, a property that it always intended to sell to a bigger company. Denison owns uranium projects in the Athabasca Basin as well as other uranium properties in Mali, Mongolia and Zambia. Full story
MERGERS AND ACQUISITIONS
Potash Corp. willing to sweeten K+S bid if more value shown
Potash Corp. of Saskatchewan Inc. is confident K+S AG shareholders will accept its $8.7-billion (U.S.) bid, but is open to raising the offer if its German rival could reveal more value not currently seen by the Canadian company, according to a source close to the deal. K+S has rejected Potash Corp.'s offer of €41 ($45 U.S.) a share, saying it is too low and grossly undervalues its Legacy potash project in Saskatchewan.
K+S has said it believes Legacy alone is worth €21 a share, which has led some analysts to speculate that K+S is looking for an offer around €50 a share. Full story
Ivanhoé Cambridge and Callahan Capital to acquire four office properties
MontreaI-based Ivanhoé Cambridge and U.S.-based Callahan Capital Properties will acquire four office properties from real estate investment firm Beacon Capital Partners for a total of $225-million (U.S.). The buildings are located in Boston, Denver, Chicago and New York. Press release
TerraForm shopping for North American wind farms
TerraForm Power Inc., a unit of SunEdison Inc., said it will buy 930-megawatt of wind farms in the United States and Canada from Invenergy Wind LLC for $2-billion (U.S.).
The deal involves seven contracted wind farms and Invenergy will retain a 9.9-per-cent stake in the U.S. assets, TerraForm said on Monday. Full story
Innvest REIT to acquire interests in two hotel properties
Innvest Real Estate Investment Trust announced that it will purchase Hotel Saskatchewan and Courtyard by Marriott in Toronto for a total of $70-million with $37-million being put toward acquiring Hotel Saskatchewan and $33-million used to acquire 33 per cent of Courtyard; Kingsett Real Estate Growth LP No. 5 will acquire the remaining 67 per cent of Courtyard.
Hotel Saskatchewan was purchased in February last year by Temple Hotels. Press release
Scalar Decisions to acquire Mainland Information Systems
Scalar Decisions Inc., an information technology solutions integrator, announced that it has reached an agreement with Mainland Information Systems to merge, creating one of Canada's largest IT solutions companies. The deal is expected to close later this month. Press release
Fortis to sell hotel assets
Fortis Inc., a North American electric and gas utility company, announced that it signed an agreement with a private investor group to sell 22 hotels in seven provinces for a total of $365-million. The company said the selling of the assets is in line with its focus on the core utility business. Press release
TalentEgg acquired by CharityVillage
TalentEgg, an online career resource based in Canada, will be acquired by CharityVillage, the largest and most popular job board for Canada's non-profit sector. The financial details were not disclosed. Blog
INITIAL PUBLIC OFFERINGS
TMAC begins trading, but value falls 6.5 per cent in early trading
TMAC Resources Inc. started trading Tuesday on the Toronto Stock Exchange, the first mining company to file for an IPO on the TSX in two years, raising $135-million. It distributed 22.5 million shares at $6 a share. The company plans to use the proceeds to help develop its Hope Bay gold mine in Nunavut. TMAC stumbled early as it fell 6.5 per cent in early trading, according to Bloomberg. Full story
Hostess Brands LLC pulls out of auction, plans IPO instead
Hostess Brands LLC, the U.S. bakery company whose snack cake brands include Twinkies and Ding Dongs, has pulled itself from the auction block and will instead pursue an initial public offering, according to people familiar with the matter. Full story
PRIVATE EQUITY AND VENTURE CAPITAL
Endurance Energy to acquire StonePoint Energy
Endurance Energy Ltd., an Alberta-based early-stage exploration and production company backed by private equity firm Warburg Pincus, agreed to acquire junior StonePoint Energy, also based in Alberta. The purchase price of 0.078125 cents a share represents a 60-per-cent premium to the volume-weighted average trading price. Press release
Cross Country Pipeline Supply enters Canada via acquisition
Cross Country Pipeline Supply Co Inc., a provider of equipment to U.S. oil and gas pipeline construction industry, is buying Sideline Specialty Equipment, a manufacturer of specialized pipeline equipment with offices in Alberta and Texas, to facilitate its entry into Canada. The terms of the deal were not disclosed. PE Hub
ANALYSIS AND INSIGHT
Meg Energy exploring sale of Access Pipeline
After a year of depressed oil prices and capital spending cuts, Meg Energy is said to be investigating options to sell its Access Pipeline, according to Royal Bank of Canada. Access Pipeline is a 345-kilometre dual line running between its Christina Lake Project and its upgrading, refining and transportation hub. Meg owns 50 per cent of the pipeline.
Know of any upcoming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? E-mail me at deals@globeandmail.com. I'll respond personally to every e-mail.