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News About Shandong Gold Mining To Acquire Brazilian Gold Mining Company For $1B
Release time£º2011.11.18 News source£ºshaking tables,mining machine,gold mining equipment_Jiangxi province mine machinery factory Browse the number£º
 

November 17 ¨C Shandong Gold Group, parent of Shandong Gold Mining (600547), plans to acquire Jaguar Mining, a Brazilian gold mining firm, for one billion dollars, reports Dongfang Daily, citing Xinuaonline.com.

The Chinese firm made an offer of $9.3 per share, a premium of 73 percent over the closing price of $5.39 last Tuesday on the New York Stock Exchange.

Shandong Gold Mining is in talks with Jaguar Mining, and plans to use cash to fully acquire the Brazilian company, according to a report from Reuters.

Jaguar Mining has total equity of 84.41 million shares worth $785 million based on $9.3 per share, as well as $268.5 million in convertible bonds, according to the report.

According to unnamed people with knowledge of the matter, the two parties have already conducted two rounds of negotiations since May, and are close to finalizing an agreement.

Chinese companies seldom pursue overseas acquisitions in the gold sector, said Yan Chen, an industry analyst at Standard Chartered Bank.

Several companies fear domestic natural resources are nearing depletion and areas available for exploration have significantly diminished, thus they are increasing acquisitions, said Michael Jansen, a rare metal analyst at Morgan Chase.

Jansen added that a total of $28 billion in acquisitions have taken place in the gold sector since the beginning of 2011.

Li Zhongyi, the chairman of Shandong Gold International Mining, refused to comment on the acquisition.

Jaguar Mining mainly explores, excavates, and develops gold reserves in Brazil, and is listed in both the US and Canada

 

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