drbubb Posted August 13, 2007 Author Report Share Posted August 13, 2007 Good News, eh? ======= 13 August 2007 SINO GOLD AND GOLDEN CHINA ANNOUNCE SIGNING OF AGREEMENT REGARDING PROPOSED TAKEOVER OFFER FOR GOLDEN CHINA Sino Gold Mining Limited (“Sino Gold”) (ASX: SGX, SEHK:1862 ) and Golden China Resources Corporation (“Golden China”) (TSX/ ASX: GCX) today announced that they have entered into an agreement (the “Agreement”) regarding a proposed offer (the “Offer”) by Sino Gold for all of the outstanding common shares of Golden China. The Agreement, which values Golden China at A$80.7 (C$73.0) million, has the unanimous support of the Golden China board of directors. Under the proposed Offer, Golden China shareholders would receive one Sino Gold share for every 4.5 Golden China common shares they hold. Following successful completion of the Offer, should Sino Gold acquire all of the currently outstanding Golden China shares, Golden China shareholders would collectively hold an interest of approximately 6.5%1 in Sino Gold. The Offer values Golden China at a 51% premium over the TSX closing price on 10th August 2007, and a 48% premium over the 10 day TSX volume weighted average trading price of the Golden China common shares. Link to comment Share on other sites More sharing options...
frizzers Posted August 13, 2007 Report Share Posted August 13, 2007 My second takeover in a week! Link to comment Share on other sites More sharing options...
drbubb Posted August 13, 2007 Author Report Share Posted August 13, 2007 keep 'em coming Link to comment Share on other sites More sharing options...
Bubble Pricker Posted August 13, 2007 Report Share Posted August 13, 2007 http://www.asx.com.au/asxpdf/20070813/pdf/313y57w350k0wn.pdf Question: What's going to happen to the warrants? Do we get shares for those or would it be advisable to exercise the warrants now? Link to comment Share on other sites More sharing options...
drbubb Posted August 13, 2007 Author Report Share Posted August 13, 2007 http://www.asx.com.au/asxpdf/20070813/pdf/313y57w350k0wn.pdf Question: What's going to happen to the warrants? Do we get shares for those or would it be advisable to exercise the warrants now? The warrants wont have much value now. Usually (but not always) they stay alive I woudl recommend holding them Link to comment Share on other sites More sharing options...
Bubble Pricker Posted August 13, 2007 Report Share Posted August 13, 2007 In addition to the proposed Offer for Golden China’s common shares, the Agreementcontemplates that each outstanding Golden China option, warrant and convertible security would be proposed to be amended so as to provide that the holder would be entitled to receive, upon the exercise or conversion thereof, in lieu of a Golden China common share, for every 4.5 held, one Sino Gold ordinary share on substantially the same terms and conditions as the outstanding Golden China security, except that the exercise price will reflect the Exchange Ratio. I read that as we will get equivalent warrants in Sino Gold. Link to comment Share on other sites More sharing options...
drbubb Posted August 13, 2007 Author Report Share Posted August 13, 2007 Calculation :: A$ (SGX.au) : A$6.41 x0.845 = us$5.42 divided by... : US$5.42 / 4.5 = us$1.203 , C$ ... 0.95 ... so us$1.203 / 0.95 = c$1.267 Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.