SSR-Alacer merger gets proxy firm backings
Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis & Co. have both recommended shareholders of SSR Mining (NASDAQ, TSX: SSRM) and Alacer Gold (TSX: ASR, ASX: AQG) to vote for their previously announced at-market merger.
The proposed business combination would see Alacer’s flagship Çöpler mine in Turkey added to SSR’s existing portfolio that includes the Marigold gold mine in Nevada, the Seabee gold operations in Saskatchewan and the Puna operations in Jujuy, Argentina.
As part of its SSR Mining analysis, ISS states that the transaction “appears to make strategic sense,” as it will result in the creation of a diversified gold producer with an experienced management team.
In its Alacer analysis, ISS believes the combined company will emerge with a strengthened balance sheet and through ownership of SSR common shares, Alacer shareholders will continue to participate in the opportunities associated with the combined company’s assets and properties.
Glass Lewis gave a similarly positive recommendation as it found “the proposed arrangement both strategically and financially compelling and structured in a reasonable manner for SSR shareholders.”
Shareholder voting will take place on July 10 through live audio webcast. Upon closing, SSR and Alacer shareholders would collectively own about 57% and 43% of the new entity respectively.