Allied Gold (TSX:AAUC,NYSE:AAUC) has agreed to be acquired by Hong Kong–listed Zijin Gold International (HKEX:2259,OTCPink:ZJNGF) in an all-cash transaction that values the Canadian miner at approximately C$5.5 billion, the companies announced Monday (January 26).
The deal will see Zijin Gold purchase all outstanding shares of Allied Gold for C$44 per share in cash, according to a definitive arrangement agreement signed by both parties. The offer represents a premium of about 5.4 percent above the company’s most recent closing price.
The transaction, which has been unanimously approved by Allied Gold’s board of directors, will be implemented through a court-approved plan of arrangement. It remains subject to shareholder approval at a special meeting as well the necessary regulatory and court approvals.
“The announced Transaction provides a highly attractive all-cash offer for Allied Gold at what represents an all-time high for the Company’s share price, crystallizing significant and certain value for its shareholders,” Allied Gold Chairman and Chief Executive Officer Peter Marrone said.
Allied Gold operates gold assets across Ethiopia, Mali and Côte d’Ivoire, regions that have increasingly attracted global miners seeking long-life projects and production growth. The company has positioned itself as a mid-tier producer with expansion potential across its African portfolio.
Zijin Gold, one of the world’s largest gold miners, said the acquisition fits its long-term strategy of expanding internationally through high-quality assets.
“Allied Gold has successfully assembled and advanced a portfolio of large-scale, long-life gold assets with compelling expansion potential,” Zijin Gold Chairman Hongfu Lin said, pointing to the Sadiola and Kurmuk projects as “generational assets” expected to deliver multi-decade production, complemented by output from the CDI Complex in Côte d’Ivoire.
The agreement includes customary deal protections. Allied Gold would be required to pay a termination fee of C$220 million to Zijin if the transaction is terminated under certain specified circumstances.
The timing of the deal also coincides with signs of easing trade tensions between Canada and China. Earlier this month, the two countries reached a preliminary agreement aimed at cutting tariffs on electric vehicles and canola while committing to reduce broader trade barriers and strengthen strategic cooperation.
Zijin Gold operates across nine countries and has pursued an aggressive international expansion strategy in recent years. The company made a strong debut on the Hong Kong Stock Exchange last year, surpassing US$100 billion in market value for the first time despite a delayed initial public offering.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.