Zijin Gold to acquire Canadian miner Allied Gold for $5.5-billion in cash

Zijin Gold agreed to acquire Allied Gold for $5.5-billion in cash, paying $44 per share; the transaction will face Canadian national security and net benefit reviews.

Zijin Gold International has agreed to acquire Toronto-based Allied Gold Corp. for $5.5-billion in cash. The buyer is paying $44 per share, a 5.4 per cent premium to the previous close, and Allied's stock reached an all-time high. Allied operates three mines in West Africa, including sites in Mali and Côte d'Ivoire, and produces about 375,000 ounces of gold a year; it also has a project in Ethiopia. The transaction will undergo Canadian national security and net benefit reviews, and Allied says it expects the deal to close by late April. Key facts: - Purchase price is $5.5-billion in cash, with Zijin paying $44 per share. - The $44-per-share offer represents a 5.4 per cent premium to the previous close and an all-time high for Allied's stock. - Allied operates three gold mines in West Africa and has a project in Ethiopia, producing about 375,000 ounces annually. - Zijin Gold is controlled by Zijin Mining Group and is partly owned by the state; the buyer trades on the Hong Kong Stock Exchange. - The deal requires at least two-thirds of votes cast by Allied shareholders to approve the transaction. - The transaction will be reviewed by Canadian authorities for national security and net benefit, and Allied expects closing by late April. Summary: The agreement would transfer Allied's West African assets to Zijin, a company that is partly state-owned. Canadian national security and net benefit reviews are scheduled, and shareholder approval of at least two-thirds of votes cast is required. Allied says it expects the transaction to close by late April.