China-based Jiangxi Copper has increased its takeover bid for SolGold, valuing the Ecuador-focused gold and copper miner at around £842m ($1.12bn), with the offer rising to 28p per share.
The boards of SolGold and Jiangxi Copper (Hong Kong) Investment Company, acting on behalf of Jiangxi Copper Company (JCC), made the announcement.
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SolGold’s board said it is “minded to recommend” the updated proposal to the shareholders if Jiangxi Copper proceeds with a formal offer on these terms.
The updated offer is Jiangxi Copper’s third non-binding attempt to acquire SolGold.
The latest offer represents a 7.7% uplift from the previous 26p-per-share proposal, which SolGold rejected last month.
A strong surge in gold prices this year, driven by geopolitical tensions and economic uncertainty, has boosted demand for safe-haven assets such as bullion and spurred consolidation in the mining sector.
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By GlobalDataBHP Billiton, a fully owned subsidiary of BHP Group, has issued a non-binding letter of intent (LoI) to JCC expressing its current support for the revised possible offer at the revised possible offer price over its 310,965,736 SolGold shares, which represent 10.3% of SolGold’s voting rights.
Newmont has also issued a LoI to JCC supporting the revised possible offer, covering its 309,309,996 SolGold shares, which account for 10.3% of the voting rights of SolGold.
Maxit Capital and its affiliates have provided a LoI to JCC in support of the revised possible offer, holding its 153,366,663 SolGold shares, representing 5.1% of SolGold’s voting rights.
SolGold CEO Nicholas Mather has also issued a LoI to JCC supporting the revised possible offer over his entire direct and indirect personal holdings of 84,249,282 SolGold shares, which represent 2.8% of the voting rights of SolGold.
Since December 2022, JCC has been a major shareholder in SolGold, holding 365,757,587 SolGold shares, around 12.2% of SolGold’s issued share capital.
With LoIs from BHP, Newmont, Maxit and Nicholas Mather supporting the revised possible offer, JCC is backed by shareholders representing 40.7% of SolGold’s issued share capital.
