Zijin Buys Allied Gold Stake After $4B Deal Collapses
The parties are weighing a price reset, a stake investment or termination as unresolved financing and security terms delay closing.
- On Wednesday, July 29, Zijin Gold and Allied Gold Corp. terminated their planned $5.5 billion acquisition after concluding there was "no reasonable likelihood" of obtaining Chinese regulatory approval by the deadline.
- While the acquisition previously secured Canadian approval, rising geopolitical tensions and tighter Chinese scrutiny of outbound investment stalled the process, preventing the deal from closing by the July 29 deadline.
- Under the new agreement, Zijin Gold will acquire a 9.2% stake in Toronto-based Allied Gold for about $295 million by purchasing 12.8 million shares at a 10% premium to Tuesday's closing price.
- Following the announcement, shares of Allied Gold plunged 19% to C$23.92 in Toronto, marking the company's lowest intraday price since late November.
- Allied Gold plans to use the investment proceeds to advance growth initiatives, including ramping up the Kurmuk mine in Ethiopia and expanding operations in Mali and the Ivory Coast.
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15 Articles
China's Zijin Gold and Canada's Allied Gold have pulled out of one of the biggest takeovers in the precious metals sector this year.
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Zijin buys Allied Gold stake after $4B deal collapses
Zijin Gold’s planned $4 billion (C$5.5 billion) acquisition of Allied Gold (TSX, NYSE: AAUC) has collapsed after Chinese regulators failed to approve the transaction before the deadline, leaving the state-backed... The post Zijin buys Allied Gold stake after $4B deal collapses appeared first on The Northern Miner.
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