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Shareholders approve Eldorado Gold takeover of European Goldfields

By The Canadian Press  | February 21, 2012

VANCOUVER - European Goldfields Ltd. (TSX:EGU) and Eldorado Gold Corp. (TSX:ELD) say a majority of shareholders of both companies have approved Eldorado's takeover offer.

Eldorado announced a friendly takeover bid for European Goldfields valued at $2.5-billion when it was announced in December.

On Tuesday, nearly 98 per cent of European Goldfields shares were voted in approval of the deal, while 96 per cent of Eldorado shares were voted in favour.

European Goldfields will apply for Yukon court approval on Wednesday and expects the deal to close Feb. 24.

"The overwhelmingly positive approval of the merger with Eldorado resoundingly affirms the merits of the transaction, and underscores the potential of the combined group as the leading growth oriented intermediate gold producer," said Martyn Konig, executive chairman and president of European Goldfields.

Under the takeover deal, European Goldfields shareholders will receive 0.85 of an Eldorado share and a tiny cash amount — one hundredth of a cent per share — for each share.

Eldorado has operations in Brazil, China, Greece, and Turkey and surrounding regions and European Goldfields owns 95 per cent of a lead, zinc and silver mine in Greece. The company also has interests in Romania.

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