Overview
- Allied Gold said on Wednesday it has terminated the US$5.5‑billion takeover agreement with Zijin Gold after the parties failed to meet extended closing deadlines.
- Instead of an acquisition, Zijin will take roughly a 9.2% equity stake in Allied through a private placement, a move Allied reported as about US$417 million though some outlets have reported a lower figure.
- Allied’s CEO Peter Marrone told reporters that delays in Chinese approval and unresolved closing mechanics such as security registration, streaming deals, capital injections and lender consents were key reasons the deal could not close.
- Allied shares fell sharply in premarket trading after the announcement, reflecting investor concern about a lower per‑share value than the CA$44 offer first proposed in January and uncertainty over project funding.
- The failed takeover follows earlier clearance by Canadian authorities and a shareholder vote in favour, and it leaves Allied reliant on new financing paths and partner commitments to advance its mines in Mali, Côte d’Ivoire and Ethiopia.