12th Feb 2015 07:54
LONDON (Alliance News) - Central Rand Gold Ltd Thursday said it has signed a non-binding memorandum of understanding with Huili Resources (Group) Ltd for the sale of its Dutch subsidiary and assets for up to USD150 million in a fourth potential deal for the company.
During 2014, Central Rand entered into agreements with Shengbang Jiabo (Beijing) Consulting Co Ltd, the Hiria Group and Beijing Ankong Investment in relation to the potential sale of its wholly owned subsidiary Central Rand Gold (Netherlands Antilles) NV, which owns all the assets of the company.
On Thursday, Central Rand said it signed a fourth non-binding memorandum of understanding with Huili, a Hong-Kong based investment holding company, on "consistent" terms and conditions of the other memorandums signed by the company, it said in a statement.
The memorandum concerns the company's potential sale of Central Rand Gold (Netherlands Antilles) NV to Huili for up to USD150 million. Central Rand said if the deal is to go through, it will enter a formal sale agreement with Huili within the next four months.
Central Rand said that the memorandum with Huili does have a "unique provision", which allows Huili the right of first purchase within 21 days of another company making an offer for the subsidiary.
Central Rand said the unique provision does not affect the company's rights to continue discussions with the other interested companies.
The company also reiterated that there is no certainty that any deal will be made with any of the companies, and that there is potential for further agreements to be made with additional interested parties, as the potential deals are not exclusive.
By Joshua Warner; [email protected]; @JoshAlliance
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