Shanta Gold has announced its acceptance of Saturn Resources' generous takeover bid of £141.95 million ($180.7 million). This East Africa-focused gold mining company states that under the terms of the acquisition, Shanta shareholders will be rewarded with 13.5 pence per share. This represents a 6.7% premium compared to Tuesday's closing price of 12.65 pence.
Saturn Resources, a wholly-owned subsidiary of ETC Holdings (Mauritius), has made an enticing offer to Shanta Gold shareholders. In addition to the share price, the shareholders will also be eligible for an interim dividend of up to 0.15 pence per share.
The decision to pursue this acquisition was not taken lightly. The company's directors have carefully considered the terms and concluded that they are fair and reasonable. Therefore, they intend to unanimously recommend that shareholders vote in favor of the deal at the upcoming general meeting.
While Shanta's independent directors maintain their confidence in the company's ability to execute its business plan and achieve strong results and growth in the future, they recognize the opportunity this offer presents. With the gold price currently near an all-time high, this all-cash offer provides shareholders with a favorable exit opportunity, considering both the current gold price and the inherent risks associated with the business.