China Hanking bids for Australia's Primary Gold

Hanking Gold International

21/02/2018 01:36

HONG KONG, Feb 21 (Reuters) - China Hanking Holdings Ltd 
 3788.HK  launched a takeover bid for Australia's Primary Gold 
Ltd  PGO.AX  on Wednesday in line with a plan to build a 
long-term Australian gold business, valuing the target firm at 
A$37.5 million ($29.6 million).  
    China Hanking, which owns 8.4 percent of Primary Gold, will 
offer A$0.0575 a share for the miner through its unit Hanking 
Australia Investment Ltd, it said in a filing to the Hong Kong 
bourse on Wednesday. 
    Shares in Primary Gold, which have been on a trading halt 
since Feb. 16, jumped as much as 33 percent to A$0.52 a share 
when trading resumed.  
    Primary Gold, which has interests in the Coolgardie gold 
project in Western Australia and the Mt Bundy gold project in 
the Northern Territory, said the offer was pitched at a 
significant premium. 
    Its independent directors unanimously recommended that 
shareholders accept the offer, in the absence of a superior 
proposal and subject to an independent expert's report, it said 
in a statement to the Australian stock exchange. 
    China Hanking said it would fund the deal through internal 
resources. 
 
($1 = 1.2687 Australian dollars) 
 
 (Reporting by Donny Kwok; editing by Richard Pullin) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: PRIMARY GOLD M&A/HANKING