Chinese may attempt takeover of Gold OneJohannesburg, South...

Chinese may attempt takeover of Gold One


Johannesburg, South Africa --- MININGREVIEW.COM --- 28 April 2011 - Gold One International ‒ an ASX and JSE-listed gold exploration, development and mining company ‒ has continued its share price rally as commentators believed the purchase of a 17.7% stake in the gold junior by a Chinese consortium might be the first step towards a full-scale takeover.

Reporting this from here, Miningmx said that Gold One shares had been trading at 370c before the holiday yesterday, up 3.64% and representing a near-40% rally since end-March.

Responding to a query by the Australian Stock Exchange, where Gold One holds its primary listing, the company said a consortium led by China?s Baiyin Nonferrous Group had concluded a deal last week to buy a 17.67% shareholding in a US$79.2 million transaction at US$0.56 per share ? which at the time represented a 25% premium to Gold One?s Australian trading price.

The seller was Nevada Trading of African Global Capital, an investment fund owned by Mvelaphanda Holdings, Och-Ziff Capital Management and Palladino Holdings. African Global Capital bought a 29.4% stake in Aflease Gold, Gold One?s predecessor, in April 2008.

As it did on March 30 when the ASX also queried Gold One on significant share price and volume movements, the company did not rule out the possibility of a takeover.

?Gold One is currently assessing a potential acquisition transaction, and also a potential change of control transaction for the company which, if it were to proceed, could involve an offer to Gold One shareholders to acquire all of their shares on terms and conditions yet to be determined,? the response read.

?At this stage, as was the case on March 30 2011, no binding arrangements have been entered into in relation to the potential transactions referred to above, and the company can give no assurance that any transaction will eventuate from those currently under contemplation.?