A C$5.5 billion takeover plan collapsed after the companies said remaining conditions were unlikely to be met, leaving Zijin to take a 9.2% stake to fund Allied Gold’s African expansion.
Allied Gold and Zijin Gold have terminated a proposed C$5.5 billion takeover after allowing the July 29 outside date to lapse, saying there was "no reasonable likelihood" the remaining conditions would be met within a reasonable period. Instead, Zijin will subscribe for about 12.8 million newly issued Allied shares at C$32.55 each in a private placement, giving the Chinese miner a 9.2% stake valued at roughly $295 million. The original deal, announced in January, would have seen Zijin acquire Allied for C$44 per share. While the transaction secured Canadian regulatory approval, it did not obtain clearance from Chinese authorities, according to market sources, after the deadline had already been extended once amid geopolitical tensions, metals-market volatility and tighter scrutiny of outbound investments from Beijing. Allied said the new funding, priced at a 10% premium to Tuesday's close and expected to complete on or about August 10, will support growth projects across its African portfolio, including the Kurmuk mine in Ethiopia, Sadiola in Mali, and output and exploration work in Ivory Coast. U.S.-listed Allied shares fell nearly 15% in premarket trading after the announcement.