The deal trumps an earlier hostile bid by Lundin Mining
Henry Sanderson September 5, 2018
China’s state-backed Zijin Mining has struck a C$1.86bn ($1.41bn) deal to buy Canadian base metals miner Nevsun Resources, beating an earlier hostile bid by Canada’s Lundin Mining.
Zijin’s C$6 a share offer represents a premium of 26 per cent over the offer made by Lundin launched in July, Nevsun said, with the company urging shareholders to accept the new bid.
The deal marks the latest push by Zijin into overseas markets. In recent years it has snapped up assets from Africa to Australia. Last week Zijin spent $1.26bn for a 63 per cent in Serbia’s largest copper smelter, RTB Bor.
Nevsun operates the Bisha copper and zinc mine in Eritrea and is developing the Timok copper and gold project in Serbia.
“The all-cash consideration of C$6 per share better reflects the fundamental value of Nevsun’s mining and development assets, while also providing an appropriate change of control premium to our shareholders,” Ian Pearce, Nevsun’s chairman, said.
“Zijin is a proven mining industry operator with a $10bn market capitalisation and a demonstrated track record of successfully completing international transactions.”
In May Nevsun rejected a C$1.5bn a bid for the company by Canada’s Lundin Mining.
“Nevsun is an exceptional operator, with a strong focus on safe, efficient and sustainable mining practices,” Chen Jinghe, Chairman of Zijin, said. “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.”