15th Jun 2015 07:18
LONDON (Alliance News) - Central Rand Gold Ltd Monday said it has extended the targeted completion date for the sale of its Central Rand Gold (Netherlands Antilles) NV subsidiary by a month to July 15 at the request of the potential buyers, and has narrowed the field of potential acquirers to two, from four.
Central Rand has a range of assets, all based in South Africa, that are held by the Dutch subsidiary that's up for sale.
The gold producer said both Huili Resources (Group) Ltd and Hiria Group Co Ltd are both in the "final phase of their respective internal processes".
"The board of directors believe it is the best interests of shareholders to accommodate this request given the advanced nature of commercial negotiations with both Huili and Hiria," Central Rand Gold said.
"We thank both Beijing Ankong Investment and Shengbang Jiabo (Beijing) Consulting Company Limited for their engagement however, the company has decided not to continue discussions with Ankong and Shengbang at this time," it added.
Central Rand Gold had previously extended the targeted completion date for the deal to June 12 to give parties time to do due diligence.
Central Rand had entered four separate non-binding memorandum of understandings with Huili, Shengbang Jiabo, the Hiria Group and Beijing Ankong Investment.
Central Rand Gold shares were down 5.1% at 14.00 pence in London early Monday.
By Steve McGrath; [email protected]; @stevemcgrath1
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