NovaGold agrees to buy Paulson’s 40% of Donlin Gold

In an all-share deal, NovaGold will take full ownership of the Donlin Gold project in Alaska through a new US company to be listed in New York, worth about $4.2bn. Paulson will hold about 40% of the economic interest but its votes will be capped at 19.99%. A shareholder vote is set for November.

Why it matters. A voting cap lets a large holder keep its economic stake without taking control, which matters under takeover rules.

Source

NovaGold

In the course

Module 9: The M&A process