Sprott Asset Management, LP plans to make an unsolicited offer to buy Central GoldTrust (TSX:GTU.UN) and Silver Bullion Trust (TSX:SBT.UN) for almost $900 million, saying the precious metals companies are undervalued. The share swap by Sprott represents an 8.3% premium to the trusts' combined market value of $829 million. Under the terms of the bid, Sprott would exchange units of its own trusts, Sprott Physical Gold Trust (ARCA:PHYS); Sprott Physical Silver Trust (ARCA:PSLV), for units of Central GoldTrust and Silver Bullion on a net asset value basis.

The offers will happen simultaneously and be conditional on the approval of both Central GoldTrust and Silver Bullion unitholders and other conditions.