Business

Goldcorp sells off stake in Tahoe Resources to raise cash

Goldcorp Inc, is selling its one-quarter interest in Tahoe Resources Inc. for just under $1 billion.
Goldcorp has sold off its stake in Tahoe Resources for $998 million.

Goldcorp Inc, is selling its one-quarter interest in Tahoe Resources Inc. for just under $1 billion.

A syndicate of underwriters will pay $17.20 for each of Goldcorp's 58 million Tahoe shares, about $998.5 million before fees.

That's a seven per cent discount to Tahoe's stock price of $18.49 at the close of trading in Toronto on Monday, prior to Goldcorp's announcement.

The transaction is expected to close by June 30.

Vancouver-based Goldcorp said the sale is part of its strategy of divesting non-core assets and improving its cash position. It operates four mines in Canada, three in Mexico, and four in Central and South America.

Based in Reno, Nev., Tahoe's main properties are the Escobal silver mine in Guatemala, which it acquired in 2010 from Goldcorp in return for shares and cash, and the Arena gold mine in northern Peru.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.