Citic to acquire Sydney gold firm

By Elisabeth Behrmann (China Daily)
Updated: 2011-05-17 13:17
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SYDNEY - China's State-owned investment company Citic Group and its partners agreed to buy Gold One International Ltd for about A$444 million ($469 million) to gain gold assets in South Africa.

The group is offering 55 cents for each Gold One share, 28 percent more than its May 12 closing price, the company said in a statement. China Development Bank Corp and Long March Capital Group are the other members of the bidding group, which is seeking a 75 percent stake and plans to keep the company trading in Australia and South Africa, with a potential listing in Hong Kong. Gold One climbed 16 percent in Sydney trading.

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The deal "gives us a great partner and ready access to their capital to grow", said Mark Wheatley, chairman of Gold One. "Staying listed will also make it easier to raise future capital."

Gold One operates the Modder East mine in South Africa and also has projects in Mozambique and Namibia. Gold reached a record this month, boosting takeovers worth $10.6 billion in the industry this quarter, the most since the third quarter last year, according to Bloomberg data.

Citic to acquire Sydney gold firm

Gold One, whose board recommended the offer, climbed seven cents to 50 Australian cents at market close in Sydney. The company said in March that it was in talks over deals including a change in control. The company agreed in April to buy Rand Uranium Ltd, a South African gold producer with uranium assets, for $250 million. Citic is making the offer through its Baiyin Non-Ferrous Group Co unit and China Development Bank through China-Africa Development Fund. The group has already agreed to buy a 17.7 percent stake in Gold One, which is being advised by Macquarie Capital Advisers Ltd and Hartleys Ltd.

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