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Bid for Jaguar Shows Record Premium Cheap With Chinese: Real M&A

Jaguar Mining Inc., which is exploring its options after receiving acquisition proposals, is proving that even a record takeover premium for a gold company can be a bargain.

Shandong Gold Group Co., owner of China’s second-largest gold producer, offered to buy Jaguar for $785 million in cash, two people familiar with the deal said Nov. 16. The $9.30-a-share bid is 77 percent more than Jaguar’s prior 20-day average, the highest premium in a cash takeover of a gold miner greater than $500 million, according to data compiled by Bloomberg. Jaguar closed yesterday at a 3.5 percent discount to its net asset value, cheaper than 94 percent of comparable gold miners.