12/01/2009 - 14:57

IGC proposes $60m merger with Nkwe

12/01/2009 - 14:57

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International Goldfields has finalised its terms of a proposed $60 million merger with Nkwe Platinum, in a move that will consolidate both stocks' platinum tenements in South Africa.

International Goldfields has finalised its terms of a proposed $60 million merger with Nkwe Platinum, in a move that will consolidate both stocks' platinum tenements in South Africa.

Both companies have been in merger talks since August last year following a deal that allowed Nkwe to acquire International Goldfields' (IGC) 15 per cent interest in the Tubatse platinum project.

Under IGC's proposal, Nkwe will buy all the shares in IGC based on the latter's cash in the bank and the valuation of the IGC's interest in Tubatse for $60 million in cash through a scheme of arrangement.

The final offer price for each IGC share has yet to be determined, however the company said that based on shares on issue and the current cash, the return to shareholders will be about 49.9 cents.

Nkwe has yet to approve the deal but IGC said it is confident of receiving the company's approval.

Nkwe currently holds a 59 per cent interest in Tubatse, not including IGC's stake, and a 74 per cent interest in two farms adjacent to the project.

The merger proposal will also be subject to shareholder and regulatory approvals.

IGC aims to complete the transaction by the end of March.

 

 

 


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