Takeover of Norton Gold Imminent
The biggest shareholder in Norton Gold Fields, Zijin, has announced a $229 million indicative takeover offer of the Kalgoorlie-based miner, Business Spectator announced today.
The Chinese gold producer has stirred speculation of a potential takeover since becoming a 16.98 per cent stakeholder in the company last September, and talks between the two companies have been in progress since January.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
- No More 'Pretty in Pink' for Rio Tinto?
- Australia Ranks #7 in Mining
- Booming Mining Industry is Creating Retail Labour Crisis
Click here to read the latest issue of Business Review Australia
While the details are still being sorted out, according to a media statement released by Norton Gold today, Zijin will pay $0.27 for each remaining share of Norton until the producer owns at least 50.1 per cent of the total shares. This offer price includes a $0.02 per cent dividend.
"It makes a lot of sense to use Norton as a platform," said Norton Gold’s managing director Andre Labuschange of Zijin’s plans to increase their presence in Australia’s mining sector.
The offer has not yet been made formal.
