Gold One International: Namibian Competition Commission grants approval for A$0.55 cash offer

Gold One International (ASX: GDO, JSE: GDO) has taken another step towards allowing a Chinese consortium to become the major shareholder, with the Namibian Competition Commission unconditionally approving the transaction.

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 approval today by the Namibian Competition Commission follows on from the South African competition commission granting unconditional approval for the offer - which was announced last month.

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.
Gold One will look to conduct a general meeting of shareholders in early September.
The timetable to paying shareholders who have tendered their shares to receive cash is mid-November 2011.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19288/gold-one-international-namibian-competition-commission-grants-approval-for-a055-cash-offer-19288.html