Hanking makes first move on Primary

ONE year on from the sale of its Southern Cross operations to fellow Chinese traveller Shandong for A$330 million, China Hanking Holdings is looking to get back into the Australian gold space, making a $37.5 million bid for minnow Primary Gold.

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Hanking, which was already Primary’s largest shareholder with 8.4%, has pitched a 5.75c cash offer that the Primary board has recommended to shareholders in the absence of a superior proposal and subject to an independent expert.

The offer comes at a 47.3% premium to Primary’s last traded share price of 3.9c and a 35.4% premium to the 30-day average share price.

The offer is subject to a 50% minimum acceptance and various approvals, and contains a number of triggers for termination including the ASX gold index not falling by 10% or the spot price of gold not falling below $1500 per ounce.

Executive chairman Garry Mills said the bid was “an attractive opportunity to realise a significant premium and certain cash value for their investment in Primary”.

While Pri...