Daylight lets Barrick take Cadence Energy

The Canadian Press

CALGARY — — Daylight Resources Trust has bowed out of the bidding for Cadence Energy Inc., leaving Barrick Gold Corp. to prevail with its offer of $6.75 per share in cash, a total of $410-million.

Daylight said Cadence, formerly Kereco Energy Ltd., will pay Daylight a break fee of $9-million as a result of the collapse of the takeover agreement they reached in late May.

Cadence stockholders were to have voted Tuesday on the Daylight offer of 0.47 of a trust unit or $5.32 in cash for each Cadence share, in a deal valued at about $300-million.

Barrick, the world's biggest gold company, topped that offer a week ago by offering $6.00 per share, quickly raised to $6.75 per share in a bid which the Cadence board endorsed Thursday.

Daylight had until Monday evening to match or top the Barrick offer.

Barrick describes its move as “an innovative response to energy cost challenges facing the mining industry,” as Cadence represents a hedge on one-quarter of Barrick's oil consumption and part of its natural gas burn.