...May 11, 2020 HONG KONG (S&P Global Ratings) May 12, 2020--S&P Global Ratings today said the credit standing of Shandong Gold Group Co. Ltd. (SDG, ###-/Stable/--) will not significantly change after its planned acquisition of TMAC Resources Inc. We anticipate SDG's operations will continue to be concentrated in China and its rating buffer will remain sufficient. The company's EBITDA interest coverage should stay comfortably above 2.0x over the next one to two years after factoring in the acquisition. On May 8, 2020, SDG's subsidiary Shandong Gold Mining announced it will acquire all the shares in TMAC, for C$1.75 each, or a 21% premium to the closing price as of May 6, 2020. That amounts to a total consideration of about C$230.1 million, or Chinese renminbi (RMB) 1.15 billion to be fully paid in cash. TMAC is a Toronto-based gold mining company with core assets in the Hope Bay Project in Canada's Nunavut; the project started commercial production in 2017. The transaction is subject to approval...
