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Premier-eFinance: Chinese investors hunting for more South African gold deals.
A group of Chinese investor, currently making $642 million bid for South Africa’s Gold One International, say they will be using this deal as a beachhead for further expansion into Africa.
Part of the deal will also see Gold One shareholders voting on a proposed minimum capital injection of $150 million.
President and CEO of Gold One International, Neal Froneman told Premier-eFinance that the Chinese consortium decided to provide new capital as it supported the company’s growth strategy. He added that the new Chinese partners viewed South Africa as a launch pad into Africa.
Froneman went on to say the Baiyen-led consortium has already indicated a willingness to inject further significant funds into Gold One to pursue this strategy. “Our partners have an affinity for Africa and with the existing Gold One management team being incentivized to stay on-board and pursue this strategy, we are well set to act upon the opportunities that we have identified,”
Industry analyst believe that parts or all of, South Africa’s fourth largest gold producer, DRD Gold could be in the sights of Gold One, which is itself on the acquisition trail after earlier this year having made an offer to buy gold producer Rand Uranium for $250 million.
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