Firms: Baker & McKenzie (Castlemaine Goldfields), Holding Redlich (LionGold)
Deal: Singapore Exchange-listed LionGold’s takeover of Castlemaine Goldfields (CGT)
Value: The takeover bid implies a value of approximately $55 million for Castlemaine. The offer values CGT shares at 18.4 cents - a 62% premium to the last trading day VWAP for CGT shares on 13 April 2012.
Key players: The Bakers team was led by corporate partner Richard Lustig and senior associate Rick Troiano, along with general associate Simon Schenkel.
Deal significance: Castlemaine is a gold producer with exploration titles in Central Victoria. LionGold has agreed to make a takeover bid for all of the issued shares of Castlemaine. The consideration for the offer will be LionGold shares. Lustig said the transaction was particularly interesting due to LionGold agreeing to offer its overseas listed scrip as consideration to Australian and overseas based shareholders under the takeover offer.
"The deal structure provides flexibility for Castlemaine shareholders who would prefer to receive cash as consideration for part of their Castlemaine shareholding, rather than scrip. LionGold intends to establish a share sale facility under which it will arrange for the sale of LionGold scrip consideration through a nominee, with the net cash proceeds to be distributed to Castlemaine shareholders who elect to participate in the facility,” said Lustig, adding that he expects to see more M&A’s involving overseas listed companies looking to enter the Australian market.