Australia's biggest gold miner could be a takeover target
By our FT.com staff - 5 Apr 2000 02:57GMT
Australia's biggest gold miner, Normandy Mining, has emerged as a takeover target after announcing a major shake-up of its operations.
Normandy said on Tuesday it planned to buy the rest of its majority-owned Great Central Mines, making it attractive to big gold players.
Mining analysts said South Africa's AngloGold could be a predator. AngloGold snapped up Australian miner Acacia Resources, a 500,000 ounce a year producer earlier this year and flagged further acquisitions.
Other bidders could include South Africa's GoldFields and North America's Barrick.
"Great Central Mines is the lion's share," said Keith Goode, a mining analyst for Bell Securities in Sydney.
Great Central Mines produces about 800,000 to 900,000 ounces of gold a year. Barrick has previously looked at the company but did not bite.
Mr Goode said a takeover bid for Normandy could be at around A$2.2bn. Normandy shares were trading up A$0.2c at $A0.94c after the announcement, valuing the company at around $1.6bn.
The company's share price has slumped from a high of A$1.50 six months ago, in line with weak gold prices.
Trading in the company's shares was halted in Australia prior to the announcement to the Australian Stock Exchange.
Robert Champion de Crespigny, Normandy's executive chairman said in a statement that the GCM buy-out would cost A$21m, but would save administration costs.
Mr de Crespigny said Normandy would also sell its 50 per cent stake in Australian Magnesium Investments to Queensland Metals, giving Normandy a 62.5 per cent stake in the QMC group.
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