Crescent Gold (ASX: CRE, TSX: CRA) is currently under an off-market takeover offer from Focus Minerals (ASX: FML), with Focus announcing the offer will be extended by two weeks until Monday 15 August 2011.
Crescent shareholders have been accepting the Focus offer, with Focus currently holding 36.2% of Crescent - with the Crescent directors already provided acceptances.
Focus is offering one share for every 1.18 Crescent, which is conditional on a minimum acceptance of 90% - representing a 30.5% premium.
Focus has received a pre bid agreement in favour of Focus for 19.9% of Crescent from Deutsche Bank group.
In addition, Deutsche Bank has stated an intention to accept the offer for the balance of its holding, around 9.24% of Crescent shares, in the absence of a superior proposal.
The merger will make Focus one of Australia’s top five gold producers with a 230,000 ounce production target in 2012 from multiple open pit and underground operations.
The combined group will have a JORC Resource of 4.3 million gold ounces.
Recently Crescent has been performing very well in boosting gold production, and just last week exceeded production guidance by 8.5% in the June quarter - producing 23,871 gold ounces for a gross value of around US$36 million, based on a spot of US$1500.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18105/crescent-gold-off-market-takeover-by-focus-minerals-extended-by-two-weeks-18105.html