By Lisa Kerner
Charlotte, N.C., Jan. 14 - Golden Cycle Gold Corp. agreed to be acquired by AngloGold Ashanti Ltd. for some $149 million.
The merger agreement calls for Golden Cycle shareholders to receive AngloGold American Depository Shares based on an exchange ratio of 29 AngloGold ADSs per 100 shares of Golden Cycle's common stock.
The offer price is $14.38 per share of Golden Cycle common stock based upon the closing price of AngloGold's ADSs on the New York Stock Exchange of $49.50 on Jan. 11.
Golden Cycle shareholders holding some 44% of the company's total issued and outstanding common stock agreed to vote in favor of the deal.
The transaction will close upon approvals and other customary conditions.
PI Financial (US) Corp. granted a fairness opinion to Golden Cycle's board of directors. The board is recommending its shareholders approve the transaction.
Golden Cycle has a minority joint venture participation interest in Cripple Creek & Victor Gold Mining Co., which is majority owned and operated by AngloGold.
"This transaction provides our shareholders with the opportunity to realize liquidity via AngloGold Ashanti's ADSs and to benefit from AngloGold Ashanti's diverse property portfolio," Golden Cycle president and chief executive officer Herbert Hampton said in a company news release.
Golden Cycle is a Colorado Springs, Colo., mining company.
AngloGold is a gold producer based in Johannesburg, South Africa.
| Acquirer: | AngloGold Ashanti Ltd.
|
| Target: | Golden Cycle Gold Corp.
|
| Announcement date: | Jan. 14
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| Transaction total: | $149 million
|
| Price per share: | $14.38
|
| Expected closing: | Upon approvals
|
| Stock price of target: | NYSE: GCGC: $10.50 on Jan. 11
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