A few weeks ago I reported that ASX listed Gold miner GDO had announced the potential for a takeover offer:
Gold One International (GDO) was issued with a 'Price and Volume' query (commonly referred to as a 'speeding ticket' on share trading forums) yesterday. Their response was posted this morning to the ASX and included some interesting information regarding a potential takeover offer. Bullion Baron
During trade on Thursday an announcement was released showing that a Chinese mining group had purchased a significant stake in GDO at a large premium to the current share price:
A Chinese mining group has bought 17.7% of Australian and locally-listed precious metals miner, Gold One International, in a move seen as a precursor to it making a bid to buy the company.
Chinese mining group Baiyin Non-Ferrous Group bought the Gold One shares at a 20% premium.
A Sens announcement by Gold One said Baiyin had become an "initial substantial holder". Business Live
Comments from GDO management were interesting, indicating that this may just be the beginning and possibly there are other deals still pending:
Neal Froneman, the CEO of Gold One, said the acquisition does indicate that a further offer will be made; however, he did leave the door open to the possibility of a takeover of Gold One by either Baiyin or any other suitor.
"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."
Trading on Thursday was slow to respond to the news and I had an opportunity to top up my own holdings at 45c before it ran hard to a 50c close, after trading at a new 52 week high of 51c (still below the price paid by Baiyin).
GDO is now my second largest share holding (second only to CCU) and I am quite confident we will see higher prices in the short to medium term as the market digests the Chinese buy-in announced Thursday and potential for a takeover offer in the near term.
Disclosure: Position held in GDO & GOLD. Not investment advice. Do your own research.