A Zijin Mining takeover bid of Nevsun Resources’ for C$1.86bn ($1.41bn) has been accepted by the Canadian company’s board, which has recommended shareholders to tender their shares to accept the offer.
The latest development comes after Nevsun rejected numerous attempts made by Lundin Mining to acquire the Canadian company.
Under the terms of the offer, Zijin agreed to acquire all issued and outstanding shares of Nevsun for a 26% increase over the C$4.75 per share latest hostile acquisition bid made by Lundin in July this year.
Lundin made public its intention to acquire Nevsun for the first time in May this year and its offer in July was turned down by Nevsun board, which continues to recommend shareholders not to tender their shares in acceptance of the offer.
The offer was rejected as the board felt that it undervalued Nevsun’s assets.
Nevsun Board of Directors chairperson Ian Pearce said: “This premium transaction is an excellent outcome for our shareholders, and the result of a rigorous and competitive global process to generate maximum value for Nevsun’s outstanding assets.
“The all-cash consideration of C$6 ($4.55) 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.”
The company’s flagship assets include the Bisha copper and zinc mine in Eritrea and the Timok copper and gold project in Serbia. The Timok project comprises an upper zone and a lower zone.
Zijin stated that following the completion of the transaction, it will work on further extending the life of the Bisha mine and explore for new deposits.
The company will also focus on developing the upper zone at the Timok project to bring it into production, and continue the advancement of the lower zone.
The completion of the acquisition is subject to regulatory authorities and other customary closing conditions.
With a market capitalisation of around $10bn, Zijin is engaged in gold, copper, and zinc exploration and development through investments in China and overseas across nine countries.
Earlier this month, Zijin reached a $1.26bn deal to acquire a 63% stake in Serbian copper smelter, RTB Bor.