Eldorado Gold Corp. (TSX:ELD) intends to bid $148 million for all outstanding shares of fellow Vancouver company Frontier Pacific Mining Corp. (TSX-V:FRP). The acquisition would secure the Perama Hill gold project in Greece and accelerate Eldorado's growth in southeastern Europe.
Under the deal, Frontier Pacific shareholders would receive 0.122 of an Eldorado common share for every Frontier Pacific common share. The bid includes a premium of $0.90 per Frontier Pacific share.
According to an agreement Eldorado has with Frontier Pacific's largest shareholder, Dundee Precious Metals Inc., Dundee will tender 42 million shares, or 25.5% of Frontier Pacific's outstanding common shares, pursuant Eldorado's proposed takeover bid.
If the friendly offer is rejected, Eldorado plans to present a takeover bid for 100% of shares directly to Frontier Pacific's shareholders.
Eldorado's share price range during the past week: between $7.38 and $7.75; 52-week high: $7.76; 52-week low: $3.79.