Sino’s golden handshake

Sino Gold has accepted an all shares takeover bid from Canada's Eldorado Gold Corporation.

Sino Gold has accepted an all shares takeover bid from Canada’s Eldorado Gold Corporation, the company announced this morning.

The offer of 0.55 Eldorado shares for every one of Sino Gold’s values the company at approximately $2.2 billion.

According to Sino Gold, the share exchange ratio is equal to a value of $7.24 per share, which represents a premium of 32.3% over the 30-day volume weighted average trading price of the company’s shares.

The transaction is an opportunity for shareholders to be part of an intermediate gold producer with strong ties to international markets, Sino Gold president and chief executive Jake Klein said.

“Sino Gold’s view is that the best value creating opportunity for its shareholders is as part of leading low-cost intermediate gold company, and we believe that this merger with Eldorado gives our shareholders exposure to such a company on attractive terms,” he 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.”

Sino Gold yesterday announced an underlying net profit for the year of $22.2 million, up from $10.8 million the previous year.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.