(All figures in U.S. dollars)
PHILADELPHIA, March 18 (Reuters) - Capital Gold CGC.A has adjourned a shareholder vote on the Gammon Gold GAM.TO takeover offer to April 1, Chairman Steve Cooper said on Friday.
The meeting is being adjourned “to allow shareholders time to explore the (revised) offer,” Cooper told Reuters.
Capital Gold’s shareholders were scheduled to vote on the Gammon offer this Friday, but the company said on Thursday it would reschedule the meeting after Gammon revised its offer in light of a sweetened bid from rival Timmins Gold TMM.V.
Based on its current share price, Vancouver-based Timmins has raised its offer to the equivalent of $6.19 per Capital Gold share, The offer comprises 2.27 Timmins common shares plus $0.25 in cash.
Gammon, which already has a friendly deal in place with Capital Gold, responded by raising the cash component of its offer to $1.09 per Capital share, plus 0.5209 of a Gammon common share. Based on the Gammon’s current share price, this would value the company at $5.66 a share.
The Timmins offer currently values Capital Gold at about $398.4 million, while the Gammon offer values the junior gold miner at about $364.2 million.
Capital Gold has urged its shareholders to back the Gammon offer as “the best transaction reasonably available to its stockholders.” ($1= $0.98 Canadian) (Reporting by Dave Warner; Writing by Euan Rocha in Toronto; editing by Janet Guttsman)