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RAPAPORT... Beijing-based Goldleaf Jewelry Co. plans to acquire a 95 percent stake in privately owned ERG Resources LLC for approximately $665 million in an attempt to diversify its holdings.
Shares in Goldleaf Jewelry surged 10 percent today to a 52-week high of CNY 15.15, or about $2.50, on the Shenzhen Stock Exchange. Goldleaf Jewelry expects to raise nearly $940 million (CNY 5.7 billion) to fund the deal through a private placement, which will be offered to no more than 10 investors. ERG Resources owns oil and gas operations in California and onshore fields along the Gulf Coast.
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