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August 26, 2009

Eldorado Enters Into Sino Acquisition Deal

Eldorado Gold has entered into an agreement to acquire all Sino Gold shares it does not already own in a deal that values Sino at C$2bn. Under Australian law, a company acquiring 20% interest in another is obliged to make a full takeover proposal. Eldorado, which acquired

By cms admin

Eldorado Gold has entered into an agreement to acquire all Sino Gold shares it does not already own in a deal that values Sino at C$2bn.

Under Australian law, a company acquiring 20% interest in another is obliged to make a full takeover proposal.

Eldorado, which acquired a 19.9% stake in Sino in June, has offered 0.55 shares for every Sino share under a scheme implementation deed arrangement.

The deal, which has been unanimously recommended by Sino directors, will create an intermediate global gold producer with combined market capitalisation of C$6.4bn, Eldorado said.

On completion of the deal, Eldorado shareholders will own about 75% of the merged company while Sino Gold shareholders will own the rest.

As Sino Gold operates China’s second-biggest gold mine the deal would also establish Eldorado as a leader among international gold producers in China, the company said.

The transaction is an exciting opportunity for the Sino Gold shareholders to participate in the creation of a leading intermediate gold producer with an international footprint and exciting prospects, Sino president Jake Klein said.

“The combined entity will continue to benefit from a strong exposure to China, one of the world’s most prospective gold-producing countries, while benefiting from portfolio diversification across Turkey, Greece and Brazil,” Klein said.

The deal is subject to shareholder and regulatory approvals.

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