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Centerra refuses Chaarat Gold's offer on purchase of company, including Kumtor

On 18 September 2018, Chaarat Gold Holdings Limited made a proposal for the all-cash acquisition of the whole of Centerra at a premium of not less than 35% above Centerra’s prevailing share price. Statement of Chaarat Gold says.

The proposed price amounted to 2 billion Canadian dollars (about $1.52 billion.)

As the company said, «the ultimate objective of this proposal was to combine the operations of Chaarat and the Kumtor mine, as part of Chaarat’s corporate strategy to participate in consolidation in the gold mining industry.»

Recall, Chaarat Gold has previously made a proposal in relation to the potential acquisition of the Kumtor mine from Centerra Gold Inc. in April 2018.

According to representatives of the company, Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals, which would have created meaningful value for Centerra’s investors and stakeholders, including the Kyrgyz Republic.

However, Centerra’s Board and management have continually declined to engage with Chaarat. So, as the company reported, the Chaarat Board is no longer pursuing either transaction.