Gold One International cash offer a step closer with BCX fulfilment of condition

Gold One International (ASX: GDO, JSE: GDO) has taken another step towards allowing a Chinese consortium becoming the major shareholder, with BCX Gold Investment Holdings conducting the bid.

Gold One has now received a Notice of Fulfilment of Condition from BCX relating to sections of the Corporation Act.

This follows on from the announcement earlier in the week that the Namibian Competition Commission unconditionally approved the transaction. The South African competition commission granted the same approval last month.

The A$0.55 cash offer

The transaction comprises a series of interdependent transactions, including a cash offer of A$0.55 per existing Gold One share and a minimum A$150 million capital injection into Gold One.

The Chinese consortium is seeking to become the major shareholder and long term strategic partner of Gold One targeting a minimum 60% stake, with the cash injection providing a major boost to the development of the company.

The consortium currently holds around a 19% stake.

Importantly for the transaction, Gold One said that all other remaining regulatory conditions precedent to the transaction which include, inter alia, relevant Chinese approvals, are progressing well and in line with the anticipated timetable.

The Consortium

To help unlock the potential of Gold One's assets, the Chinese consortium has a premium brand in Asian financial markets providing access to capital and competitive financing.

The large network of the consortium partners also provides Gold One with exposure to a greater number of new acquisition opportunities.

Transaction benefits for shareholders

Gold One said that the transaction has a number of benefits for shareholders, including:

- An attractive cash offer of A$0.55, representing a significant premium for shareholders who wish to accept the offer for some or all of their shares;
- A significant cash injection into Gold One to accelerate its growth plans;
- The introduction of a strong, long-term partner with a common strategic vision; and
- The creation of an effective and capable platform for further industry consolidation.
The timetable for paying shareholders who have tendered their shares to receive cash is mid-November 2011.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19400/gold-one-international-cash-offer-a-step-closer-with-bcx-fulfilment-of-condition-19400.html