The company based in Beijing Goldleaf Jewelry Co. plans to acquire a 95-percent stake in private company ERG Resources LLC as part of the diversification of its assets, Rapaport reports. The transaction price is estimated at about $ 665 million.
After the announcement of the planned transaction, Goldleaf Jewelry stock quotes on the Shanghai Stock Exchange jumped 10% to CNY 15.15, or about $ 2.50 per share, updating the price maximum for 52 weeks.
To finance the transaction, Goldleaf Jewelry expects to attract about $ 940 million (CNY 5.7 billion) through a private placement, within which its shares will be offered to no more than 10 investors.
ERG Resources owns oil and gas assets in California and onshore deposits along the Gulf of Mexico.