By Una Galani
DUBAI Oct 3 (Reuters Breakingviews) - The Gulf country is
hungry for exposure to gold. Its offer to finance a Greek mining
project will secure it at least 27 pct of the Canadian group at
a snip of its mooted July valuation. But in current markets,
investors will have to think hard before turning away the
Full view will be published shortly.
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-- Qatar Holding said on Oct. 1 that it will invest almost
$1 billion in European Goldfields including $600 million to
finance mining operations in Greece, where the Canadian listed
firm recently won a key permit.
-- The sovereign fund agreed to provide a $600 million
seven-year secured loan facility at a margin of 7 percent above
6 month Libor per annum. As part of the facility, Qatar will
receive warrants to purchase 40.4 million shares in European
Goldfields at a strike price of 9.08 Canadian dollars per share.
-- In addition, Qatar also acquired a total 9.9 percent
stake in European Goldfields, or 18.2 million shares at a cost
of 10 Canadian dollars each, from a subsidiary of Greek’s
largest construction group Ellaktor and shareholder Dimitrios
Koutras. As part of the deal, Qatar will have a call option to
buy a further 5 percent or 9.4 million shares at a price of 13
Canadian dollars per share.
-- In August, Qatar agreed to invest 500 million euros to
support a merger of Alpha Bank and Eurobank, two of the
recession-hit country’s largest banks. The deal would give the
Qataris about 17 percent of enlarged group.
-- Qatar Holding was advised by Credit Suisse. Evolution
Securities, Liberum Capital, and Lazard & Co. advised the
company and its directors.
-- The financing transaction is subject to shareholder
-- European Goldfields statement
-- Reuters: Qatar Holding to invest $1 bln in European
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own)
-- For previous columns by the author, Reuters customers can
click on [GALANI/]
(Editing by Pierre Briançon and David Evans)
Keywords: BREAKINGVIEWS QATAR/
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