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November 1, 2018updated 02 Nov 2021 5:27am

Chaarat Gold gives up on Kumtor mine pursuit and $1.52bn Centerra deal

Chaarat Gold has pulled out of the proposed acquisition of both Canadian gold mining firm Centerra Gold for C$2bn ($1.52bn) and its Kumtor mine in Kyrgyzstan after failing to engage with the latter’s management.

Chaarat Gold has pulled out of the proposed acquisition of both Canadian gold mining firm Centerra Gold for C$2bn ($1.52bn) and its Kumtor mine in Kyrgyzstan after failing to engage with the latter’s management.

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The company first made an offer to purchase the mine from Centerra. However, the Canadian company did not show interest in selling the mine, following which Chaarat made a takeover bid for Centerra in September.

The proposed offer value comprised a premium of at least 35% above Centerra’s prevailing share price of C$5.48 ($4.17) at the time of the proposal.

Chaarat noted that repeated attempts to engage in an amicable discussion with the management of Centerra did not materialise.

“Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals.”

In a statement, the company said: “Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals, which would have created meaningful value for Centerra’s investors and stakeholders, including the Kyrgyz Republic. However, Centerra’s board and management have continually declined to engage with Chaarat.”

The company’s acquisition bid for the mine was a three-way deal, which also involved the Kyrgyz state consortium Kyrgyzaltyn.

Under the terms of the proposal, Kyrgyzaltyn would have had rights exceeding 50% of the mine’s post-tax cash flow.

Located around 60km north of the border with China, the Kumtor mine produced more than 500,000oz of gold last year.

Earlier this week, Chaarat reached a deal to buy the Kapan polymetallic mine in Armenia from Russia’s Polymetal International as part of its strategy to become a significant gold company in the Commonwealth of Independent States (CIS).

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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