31st Oct 2018 12:45
LONDON (Alliance News) - Chaarat Gold Holdings Ltd said Wednesday it had dropped its proposal to buy either the whole of Centerra Gold Inc or its Kumtor Mine after the firm refused to engage with Chaarat.
In April, Chaarat proposed to buy the Kumtor mine in Kyrgyzstan from Centerra.
This was followed in mid-September with a further proposal to buy the whole of Centerra in an all-cash deal at no less than a 35% premium above its CAD5.48 share price at the time of the proposal, Chaarat added.
With Toronto-listed Centerra having 292 million shares outstanding, this implies a proposed price of no less than CAD2.16 billion, or GBP1.28 billion.
"Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals, which would have created meaningful value for Centerra's investors and stakeholders, including the Kyrgyz Republic," Chaarat explained in a statement. "However, Centerra's board and management have continually declined to engage with Chaarat."
Consequently, the lack of engagement by Centerra has led to Chaarat no longer pursuing either transaction.
Shares in Chaarat remain suspended from trading on AIM pending its proposed reverse acquisition of Polymetal International PLC-owned Kapan Mining & Processing Co CJSC for USD55 million. Chaarat shares last traded at 24.15 pence in late April.
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