Gold producer Kingsgate Consolidated Ltd
(ASX:KCN) has put forth a friendly $22 million takeover proposal for Laguna Resources
(ASX:LRC), with both companies signing a bid implementation agreement.
Under the planned deal Kingsgate will offer one of its shares for every 250 Laguna shares held. The Laguna board has unanimously recommended the share offer and say they intend to accept the offer for their shares in the absence of a superior proposal.
Both Kingsgate and Laguna say the deal is value enhancing for both companies, with the combined forces leveraging synergy between Kingsgate’s South American commercial and technical experience and Laguna’s Chilean focused management.
Only last week Kingsgate made a $376 million takeover bid for fellow gold miner Dominion Mining Ltd (ASX:DOM).
Kingsgate Consolidated posted a profit of $73.06 million in the 2010 financial year.
