Golden Star Agrees to $470 Million Takeover by Chifeng Jilong
(Bloomberg) -- Canadian miner Golden Star Resources Ltd. agreed to be acquired by Chifeng Jilong Gold Mining Co. in a $470 million deal that gives the Shanghai-listed company access to a gold mine in Ghana.
Chifeng agreed to pay $3.91 cash for each share of Golden Star in the deal, a 24% premium to Friday’s closing price in New York. Golden Star’s board unanimously approved the transaction and recommends shareholders support the deal, the Toronto-based company said Monday in a statement.
Golden Star owns and operates the Wassa underground mine in the western region of Ghana in West Africa.
“We believe that the transaction will benefit all of our stakeholders, with shareholders receiving an attractive premium in return for the future growth potential, and with Wassa forming part of Chifeng’s larger portfolio of gold mines there will be a larger capital base to help deliver that growth,” Golden Star Chief Executive Officer Andrew Wray said Monday in a statement.
The transaction requires two-third approval from Golden Star investors at a shareholder meeting expected to be held before the end of the year. Golden Star hired Canaccord Genuity Corp. as its financial adviser, while Chifeng hired Stifel Nicolaus Canada and First Asia Group Ltd. as its advisers on the deal.
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