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Central GoldTrust says Sprott’s hostile bid ‘fails to achieve minimum tender condition’

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On May 27, Sprott launched a hostile bid for its rival fund.

Central GoldTrust (TSE:GTU.UN) (TSE:GTU.U) (NYSEMKT:GTU), a fund that invests primarily in long-term holdings of gold bullion, said on Wednesday that Sprott Asset Management and Sprott Physical Gold Trust, “have failed by a substantial margin” to achieve sufficient support from GoldTrust unitholders to complete their offer. 

“As a result, Sprott has yet again extended their inadequate, hostile offer to acquire all of the outstanding Units of GoldTrust,” Central GoldTrust said in a statement on Wednesday. 

“They [Sprott] have made no improvement to the terms of their offer, which is now set to expire on October 9, 2015,” Central GoldTrust added.

Sprott launched on May 27 an unsolicited offer for its rival fund. The unsolicited offer which requires support from two thirds of the Central unitholders.

“A large number of GoldTrust Unitholders have consistently said "NO" to Sprott's offer and have clearly expressed the view that they wish to continue to remain GoldTrust Unitholders,” Central GoldTrust said on Wednesday.

 


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