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WATERDOWN, Ont. - Kerry Holdings Ltd. and MCS Holding LLC plan to
acquire QGX Ltd. (TSX:QGX), a miner operations in Mongolia, in an offer
valued at $259 million.
Shareholders of QGX representing approximately 42 per cent of the firm have agreed to tender to the $5-per-share cash offer.
The board of directors of QGX has also unanimously recommended the
deal, which includes a $9.1 million break fee and is expected to close
in September.
QGX's two most advanced properties are the Baruun Naran and the
Golden Hills projects in Mongolia. Barrick Gold Corp. (TSX:ABX) holds a
nine per cent stake in the company, which is based in Waterdown, Ont.
Kerry is a private investment holding company incorporated in
Hong Kong, with diversified businesses throughout the Asia Pacific
Region. MCS is one of the largest private sector companies in Mongolia,
with over 3,200 employees.
Shares in QGX, which had been halted pending news, rose 38
cents or more than eight per cent on the TSX to $4.88, with 2.5 million
changing hands.
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