Gold One International: A$0.55 cash offer by Chinese consortium now unconditional

Gold One International (ASX: GDO, JSE: GDO) has taken another significant step towards the transformation of the company into a very well funded gold producing company, with the A$0.55 cash offer by a Chinese consortium now unconditional.

BCX Gold, which is a special purpose vehicle formed by the consortium, has advised Gold One of the offer now becoming unconditional, due to it obtaining the requisite approvals to proceed with the transaction from the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Foreign Exchange of the People’s Republic of China (PRC).

Accordingly, it has freed the offer from all defeating conditions that had not been fulfilled, including a waiver of the condition that the consortium obtain a minimum 60% interest in Gold One on a fully diluted basis.

The offer comprises a series of interdependent transactions, including the cash offer 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.


Timeline and relevant interest

The offer is scheduled to close on Thursday 15 December 2011, with the payment of the offer consideration expected to take place on Friday 23 December 2011.

The consortium currently has a relevant interest of around 23.895% on an undiluted basis in the ordinary shares of Gold One.


Gold One board supports the offer

Neal Froneman, Gold One president and chief executive officer, commented: “I am very pleased that the requisite PRC approvals needed to complete the transaction have been obtained, and that all remaining conditions to the offer have been waived.

"We look forward to concluding the transaction as soon as possible.”

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22619/gold-one-international-a055-cash-offer-by-chinese-consortium-now-unconditional-22619.html