Published: January 5, 2024 |

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Saturn Resources (Bidco), a wholly-owned subsidiary of ETC Holdings (Mauritius), has reached an agreement to acquire East Africa-focused Shanta Gold for around $179 million (£141.95 million).

As agreed, Bidco will buy the entire issued and to be issued share capital of Shanta not already owned by any member of the Bidco Group via an all-cash offer.

In a statement, Shanta Gold said that the independent Shanta directors consider the terms of the acquisition to be fair and reasonable, and plan to recommend the voting scheme shareholders to vote in favor of the transaction at the general meeting.

“Shanta has successfully brought two mines into production since 2013 and has an exciting development project in West Kenya,” said Shanta Chairman Tony Durrant.

“Whilst the independent Shanta directors have confidence in Shanta’s ability to deliver on its business plan and to continue to deliver strong results and growth in the future, this is an all-cash offer at a premium to the current price when the gold price is close to an all-time high. As such it provides an exit opportunity in cash for all shareholders taking into account the current gold price as well as the operational and other risks inherent in the business,” added Durrant.

“As part of ETC Holdings, Shanta will benefit from the experience and connections of ETC Holdings and ETG in East Africa and as a result, have additional support during the currently heightened levels of macro-instability,” said Bidco and ETC Holdings Director Ketan Patel.

The acquisition is expected to complete in the first half of 2024, subject to several conditions including necessary regulatory and shareholders approvals among others.

Source: NS Energy

ETC Holdings is a diversified conglomerate with vast experience spanning various sectors including mining and metals & minerals. Its ethos of equality, fairness, and constant pursuit of excellence is embedded in each facet of their business. With a footprint spanning 49 countries across six continents, ETC Holdings is well positioned to capitalize on opportunities to the benefit of its customers. 

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