Allied Gold's $4B sale to Zijin collapses, salvages $295M stake deal
What's the deal? Allied GoldDealroom has a profile for this one. Try Dealroom →'s planned C$5.5-billion ($3.90-billion) sale to China's Zijin Gold InternationalDealroom has a profile for this one. Try Dealroom → has been terminated, with Zijin instead agreeing to invest about $295 million for a 9.2% stake in the Canadian gold producer.
Why now? The companies mutually agreed not to extend the July 29 outside date, concluding there was "no reasonable likelihood" the remaining closing conditions would be met within a reasonable period. Zijin first agreed to acquire Allied at C$44 a share in January.
What could go wrong? US-listed shares of Allied Gold fell more than 13% in premarket trading after the news, signalling investor unease over the collapsed takeover.
The signal: The $295 million injection ranks in the 97th percentile among all-time post-IPO equity rounds by Canadian companies, a sample of 3,948. The outcome shows a full acquisition giving way to a minority stake — leaving Zijin a foothold in Allied without the regulatory burden of a full buyout.
Read more: Engineering News
