February 21, 2012 / 5:08 PM / 6 years ago

UPDATE 1-Eldorado, European Goldfields investors back merger

TORONTO, Feb 21 (Reuters) - Shareholders of European Goldfields overwhelmingly approved a C$2.5 billion ($2.5 billion) friendly takeover by Eldorado Gold on Tuesday, a move that will expand Eldorado’s asset base in Greece and Turkey.

European Goldfields said that more than 90 percent of the votes cast at a shareholder meeting in Toronto were in favor of the cash and stock deal that was announced in December.

Vancouver-based Eldorado, which held a separate shareholder meeting in Toronto earlier in the day, said its shareholders also approved a share issuance plan that will allow the acquisition to proceed.

European Goldfields shareholders were offered 0.85 of an Eldorado share and C$0.0001 in cash for each share tendered.

Following the close of the deal, current Eldorado shareholders will own about 78 percent of the combined company, while shareholders of European Goldfields will hold around 22 percent, on a fully diluted basis.

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