CITIC Group (中國中信集團), China’s biggest state-owned investment company, and partners agreed to buy Gold One International Ltd for about A$444 million (US$469 million), gaining gold assets in South Africa.
The group is offering A$0.55 a share for each of Gold One’s, 28 percent more than its closing price on Thursday last week, the Sydney-based company said on Sunday in a statement.
China Development Bank Corp (國家開發銀行) and Long March Capital Group (長三月資本集團) are the other members of the bidding group, which is seeking as much as 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 yesterday.
The deal “gives us a great partner and ready access to their capital to grow,” Mark Wheatley, chairman of Gold One said in a telephone interview. “Staying listed will make it also 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 in the industry with US$10.6 billion worth this quarter, the most since the third quarter last year.
The company said in March it was in talks over deals including a change in control. The company agreed last month to buy Rand Uranium Ltd, a South African gold producer with uranium assets, for US$250 million.
CITIC is bidding through its Baiyin Non-Ferrous Group Co (白銀有色集團) unit and China Development Bank through its China-Africa Development Fund (中非發展基金).