Reuters reports that,
TORONTO, July 22 (Reuters) – Private Asian holding companies Kerry Holdings and MCS Holding are teaming up to buy Canadian-based metals explorer QGX Ltd (QGX.TO: Quote, Profile, Research) for C$259 million ($256 million), the three firms said on Tuesday.
The friendly cash offer values QGX at C$5 a share, an 11 percent premium to the miner’s closing price on Monday.
QGX’s board has unanimously recommended the offer and shareholders representing about 42 percent of the shares have agreed to tender to the bid, the company said.
QGX’s stock surged on the news, and was up 8.9 percent after the shares resumed trading following a halt. QGX was up 40 Canadian cents at C$4.90 on the Toronto Stock Exchange.
The stock has risen 48 percent since QGX announced in February it was reviewing strategic alternatives, which is generally taken to mean putting itself up for sale.
Kerry Holdings is based in Hong Kong, while MCS is based in Mongolia. They are making the offer through a joint venture called Mongolia Holdings Corp.
QGX is based in Waterdown, Ontario, but explores in Mongolia and owns gold, copper and coal assets in the country.
Mining major Barrick Gold (ABX.TO: Quote, Profile, Research) holds a 9 percent stake in the company and has agreed to tender its shares to the bid, QGX executive chairman David Anderson said. ($1=$1.01 Canadian) (Reporting by Cameron French; editing by Rob Wilson)