14/05/24

Carey Olsen advises Shanta Gold on £156.1 million takeover by Saturn Resources Limited

Press Release from Carey Olsen, Tuesday 14 May, 2024. 

Carey Olsen's corporate team in Guernsey has advised Guernsey-registered East Africa-focused gold mining company, Shanta Gold Limited ("Shanta"), on its acquisition by Saturn Resources Limited ("Saturn Resources"), a subsidiary of ETC Holdings (Mauritius) Limited, via a court-approved scheme of arrangement under Guernsey Law which values the company at £156.1 million.

The transaction saw Saturn Resources increase its offer from 13.5 pence per share to 14.85 pence per share in order to secure the required support of Shanta shareholders, resulting in the acquisition being approved by more than 80% of the Shanta shareholders who voted at the shareholder meeting to approve the scheme. The increased offer had been unanimously recommended by the Independent Shanta Directors.

The scheme of arrangement was sanctioned by the Royal Court of Guernsey on 8 May 2024 and became effective on 10 May 2024. Trading of Shanta shares on the London Stock Exchange's AIM market has been suspended, with cancellation anticipated on 13 May 2024.

Working alongside onshore counsel Memery Crystal and investment bank Liberum, the Carey Olsen team advising Shanta on the Guernsey aspects of the takeover was led by partner Tony Lane and assisted by senior associate James Cooke. Advocacy at the Royal Court was undertaken by counsel Tim Bamford. 

Tony Lane commented: "As long-term advisers to Shanta, we are proud to have helped the board to secure this attractive transaction for shareholders. The deal showcases our sector expertise in advising listed companies operating in the natural resources sector and is also the latest example of a number of public-to-private takeover transactions which we have successfully completed in the past year."  

CEO of Shanta, Eric Zurrin, said: "The board are delighted to have successfully facilitated a good deal for shareholders and enabled them to realise the value of their investment in the company.  The transaction involved a number of complex issues and unexpected developments, and we took great comfort from the professionalism, expertise and guidance provided by all of our advisers, including Carey Olsen, who worked seamlessly together." 

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