Zijin Gold’s $4 Billion Allied Bid Stalls as Beijing Flags Mali Risk, 27% Premium
Updated
Updated · Financial Times · May 29
Zijin Gold’s $4 Billion Allied Bid Stalls as Beijing Flags Mali Risk, 27% Premium
3 articles · Updated · Financial Times · May 29
$4 billion of Zijin Gold International’s planned takeover of Allied Gold is now in doubt after Beijing’s approval process slipped past the deal’s original May 29 closing deadline.
China’s NDRC has challenged both the 27% premium in Zijin’s C$44-a-share offer and the geopolitical exposure tied to Allied’s Sadiola mine in Mali, people familiar with the matter said.
Mali’s recent violence has sharpened those concerns: separatist and jihadist attacks last month killed senior officials, and the military government has already detained foreign mining executives and recut mining contracts.
Allied shares have fallen about 13% since the unrest and last traded at C$37.31, well below Zijin’s offer, signaling investors increasingly expect the transaction could fail.
For Hong Kong-listed Zijin Gold International, the delayed deal would disrupt what was meant to be its first major overseas acquisition since its IPO, even as both companies say they are still working toward closing.