11th Nov 2014 08:46
LONDON (Alliance News) - Central Rand Gold Ltd saw its shares sky-rocket on Tuesday after it said it has entered into a memorandum of understanding with Hiria Group Co Ltd to sell the entirety of its Dutch subsidiary.
Central Rand shares were up more than two-and-a-half times in value to 28.80 pence per share on Tuesday morning, comfortably the best performer in the AIM All-Share.
The subsidiary, Central Rand Gold (Netherlands Antilles) NV, owns the assets of the Central Rand Group and will be sold to Hiria for USD150 million if the transaction goes through via a formal share sale agreement.
The memorandum is not binding, and Central Rand said it is continuing talks with other parties interested in purchasing the assets and subsidiary as it is not exclusive to Hiria. The company and Hiria have agreed to try and finalise the deal by the end of March 2015.
Hiria is a wholly owned subsidiary of Marsa (Canada) Group Holdings, which provides vehicle and yacht financial leasing to customers in the Columbia, Ontario and Quebec provinces of Canada.
"Given the ongoing operational review and recent approach from Hiria, the board is also actively reviewing its balance sheet and capital requirements to ensure it remains well funded to continue operations and expedite completion of the transaction," it said in a statement.
By Joshua Warner; [email protected]; @JoshAlliance
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