The deal will see Zijin Gold purchase all outstanding shares of Allied Gold for C$44 per share in cash, according to a definitive agreement signed by both parties. The offer represents a premium of approximately 5.4 percent above the company’s most recent closing price.
The transaction, which was unanimously approved by Allied Gold’s board of directors, will be implemented through a court-approved arrangement. It remains subject to shareholder approval at a special meeting, as well as necessary regulatory and court approvals.
“The announced transaction provides a very attractive cash offer for Allied Gold, which represents an all-time high for the company’s share price, delivering significant and certain shareholder value,” said Peter Marrone, Chairman and CEO of Allied Gold. said.
Allied Gold operates gold assets in Ethiopia, Mali and Ivory Coast, regions that have increasingly attracted global miners seeking projects with longevity and production growth. The company has positioned itself as a mid-sized producer with expansion potential in its African portfolio.
Zijin Gold, one of the world’s largest gold miners, said the acquisition fits in with its long-term strategy of expanding internationally through high-quality assets.
“Allied Gold has successfully assembled and developed a portfolio of large-scale, long-lived gold assets, with compelling expansion potential,” said Hongfu Lin, chairman of Zijin Gold, pointing to the Sadiola and Kurmuk projects as “generation assets” expected to deliver decades of production, complemented by the output of the CDI complex in Ivory Coast.
The agreement includes the usual deal protections. Allied Gold would be required to pay a termination fee of C$220 million to Zijin if the transaction is terminated under certain specified circumstances.
The timing of the deal also coincides with signs of easing trade tensions between Canada and China. Earlier this month, the two countries reached an agreement provisional agreement aimed at lowering tariffs on electric vehicles and canola, while committing to reducing broader trade barriers and strengthening strategic cooperation.
Zijin Gold operates in nine countries and has pursued an aggressive international expansion strategy in recent years. The company made a strong debut on the Hong Kong Stock Exchange last year, surpassing US$100 billion in market value for the first time despite a delayed IPO.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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