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Freehills in golden deal
FREEHILLS IS advising Agincourt Resources Limited in its friendly takeover offer by fellow goldminer Oxiana Limited.Partner David Gray and senior associate David Berg are the principle…
Lawyers Weekly
FREEHILLS IS advising Agincourt Resources Limited in its friendly takeover offer by fellow goldminer Oxiana Limited.
Agincourt’s board has unanimously agreed to recommend Oxiana’s bid to shareholders. It is also supported by Agincourt’s major shareholder, Newmont Mining Corporation, which has signed a pre-bid acceptance deed with Oxiana on it’s 19.9 per cent holding in the company.
Agincourt shareholders will be offered 0.65 ordinary fully paid Oxiana shares for every Agincourt share held. Agincourt said this equates to $1.92 per Agincourt share based on Oxiana’s closing price on 25 January 2007.
The offer values Agincourt at $415 million, and reflects a premium of about 39 per cent to the volume weighted average price for Agincourt shares in the 30 days prior to the takeover offer on 29 January.
“The acquisition of Agincourt continues the Oxiana strategy of owning, developing and operating quality resource assets in the Asian-Australian region,” said Oxiana’s managing director, Owen Hegarty.
He said Agincourt’s Martabe Gold Project in North Sumatra, Indonesia, would increase his company’s gold resource base to about 16 million ounces.
Agincourt also holds a controlling stake in a uranium project and the Wiluna Gold operation in Western Australia.
The bid must be accepted by 90 per cent of shareholders before it can go ahead.
