The offer involves an exchange of 0.55 Eldorado (CA:ELD 11.38, -0.58, -4.85%) shares for each share of Sino Gold, valuing the company at 2.2 billion Australian dollars ($1.85 billion) or 7.24 Australian dollars a share. The Canadian miner currently owns a 19.8% stake in Sino Gold. "The Sino Gold directors unanimously recommend that Sino Gold shareholders vote in favor of the scheme," the company said in a statement filed Wednesday with the Hong Kong Stock Exchange. In Thursday midday trading, shares of Sino Gold (HK:1862 42.50, +4.50, +11.84%) (AU:SGX 6.68, +0.71, +11.89%) were up 12.1% in Sydney, and 12.5% higher in Hong Kong. Following the announcement, Morgan Stanley lifted it price target on the Sydney-listed shares to 7.24 Australian dollars from 6.46 Australian dollars previously. Late in the session, the stock was changing hands at 6.70 Australian dollars. Eldorado said it will seek an Australian listing for its own shares through a depositary interest and that it would be possible for investors to hold the Eldorado shares they receive on the Australian Stock Exchange. Sino Gold's main assets in China are the Jinfeng and White Mountain gold mines.

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