Nevsun Agrees to $1.41B Takeover Bid by Zijin Mining
The cash offer represents a premium of 57% over Nevsunís unaffected closing price of C$3.82 on May 7, the day Lundin Mining Corp. first publicly announced its intention to acquire Nevsun. Zijinís offer is 26% more than the hostile takeover bid launched by Lundin on July 26.
Nevsunís Board of Directors unanimously recommended that shareholders accept Zijinís offer, while still recommending that it rejects the Lundin offer. The Lundin offer will expire on November 9. ďThis premium transaction is an excellent outcome for our shareholders, and the result of a rigorous and competitive global process to generate maximum value for Nevsunís outstanding assets,Ē said Ian Pearce, chair of Nevsunís Board of Directors. ďThe all-cash consideration of C$6 per share better reflects the fundamental value of Nevsunís mining and development assets, while also providing an appropriate change of control premium to our shareholders.Ē
Chen Jinghe, chairman of Zijin, said, ďNevsun is an exceptional operator, with a strong focus on safe, efficient and sustainable mining practices. As the new owner, we will continue that focus, and we look forward to working with stakeholders in Eritrea and Serbia to advance these mining and development assets.
ďAt the Bisha mine in Eritrea, our objective will be to further extend the life of the mine and explore for new deposits. At the Timok Project in Serbia, we intend to rapidly develop the Upper Zone and bring it into production, and continue to advance and define the worldclass potential of the Lower Zone.Ē
Nevsunís Board of Directors had previously rejected the hostile bid from Lundin because it believed it ignored the fundamental value of Nevsunís assets.
Formed in 1993, Zijin is based in Fujian, China, and is a global mining company specializing in gold, copper, zinc and other mineral resource exploration and development. Among Zijinís substantial global mining activities are strategic partnerships with Toronto-based Barrick Gold Corp., related to the Porgera mine in Papua New Guinea; and Vancouver- based Ivanhoe Mines Ltd., related to the Kamoa-Kakula copper project in the Democratic Republic of Congo. Zijin also completed a board-supported takeover of Norton Gold Fields Ltd., an Australian mining company, in 2015.