Allied Gold shares plunge 16% after Zijin Gold terminates its $3.9B acquisition but agrees to a $295M investment instead.
Allied Gold (AAUC) shares fell 16.1% in pre-market trading after China’s Zijin Gold (ZIJMF) (ZIJMY) terminated its $3.9B takeover agreement. The companies cited an inability to meet closing conditions by the July 29 deadline as the reason for the collapse.
The deal, initially valued at C$5.5B, was one of the largest proposed acquisitions in the gold sector this year. No prior revisions to the agreement were publicly disclosed, and market expectations had centered on regulatory and financing approvals progressing smoothly.
In lieu of the acquisition, Zijin Gold secured a $295M investment in Allied Gold, though details of the structure remain undisclosed.