Shandong Gold to Buy Hengxing in $393 Million Stock Deal (1)

Shandong Gold Mining Co., the acquisitive state-backed Chinese metal producer, agreed to buy smaller rival Hengxing Gold Holding Co. for HK$3.04 billion ($393 million) in stock.

Shareholders of Hengxing will be offered 5 new Hong Kong-traded shares of Shandong Gold for every 29 shares they hold, the companies said in an exchange filing Wednesday, confirming an earlier Bloomberg News report. The deal values Hengxing Gold at about HK$3.29 per share, an 11.8% discount to its last close.

Hengxing also declared a special dividend of HK$0.3585 per share, which will be paid regardless of whether the takeover is approved, ...