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January 2, 2024
Shanta Gold board gives support to $141m all cash takeover offer

TANZANIAN gold mining company Shanta Gold said in December it had received a $141.95m all-cash takeover offer effectively taking the company private.

The offer, equal to 13.5 pence per Shanta share, is from ETC Holdings which is described in a bid document as an investing company “with assets in a diverse range of industries”.

The offer, which was made public on December 20, represented 27.74% premium to Shanta’s average share price for the previous 12 month period. The offer had the support of Shanta’s independent directors as well as its two largest shareholders.

“Whilst the independent Shanta directors have confidence in Shanta’s ability to deliver on its business plan and to continue to deliver strong results and growth in the future, this is an all-cash offer at a premium to the current price when the gold price is close to an all-time high,” said Tony Durrant, chair of Shanta last month.

“As such it provides an exit opportunity in cash for all shareholders taking into account the current gold price as well as the operational and other risks inherent in the business,” he added. Shares in the company were last trading at 12.90p/share.

In July, Shanta said it would average 103,000 ounces in annual gold production over five years with potential for expansion from its recently commissioned Singida mine.

However, its CEO of six years standing Eric Zurrin announced in April plans to step down at the end of 2023.

The post Shanta Gold board gives support to $141m all cash takeover offer appeared first on Miningmx.

 

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