Golden Star Resources (GSR-X) has offered to purchase all outstanding shares of subsidiary Pan African Resources (PARC-C) that it doesn’t already own.
Golden Star intends to offer one Golden Star share for every 50 shares of Pan African. The transaction values the Pan African shares at 7 per share, which represents a 70% premium over an average share price during the 60 days of trading ended Dec. 15.
Golden Star currently owns 64% of Pan African’s 53.8 million shares, which means Golden Star would issue 388,590 shares of Golden Star for the 19.4 million shares its doesn’t already own. Pan African would then be delisted and become a wholly owned subsidiary of Golden Star.
The transaction is subject to approval by Pan African shareholders (other than Golden Star) and the Ontario Securities Commission.
Golden Star expects to see savings of as much as US$300,000 as a result of bringing Pan African back into the fold.
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