and entered into a definitive agreement pursuant to which Zijin will make a take-over bid to acquire all of the issued and outstanding shares of Nevsun for C$6.00 per share in cash. The Offer is valued at C$1.86 billion (US$1.41 billion).
The cash consideration of C$6.00 per share represents a premium of 57 per cent over Nevsun’s unaffected closing price of C$3.82 on May 7, 2018, the day Lundin Mining first publicly announced its intention to acquire Nevsun. In addition, the Offer is C$1.25 per Nevsun share, or 26 per cent, more than the C$4.75 per share hostile take-over bid for Nevsun launched by Lundin on July 26, 2018. The Offer is not subject to any financing conditions.
Nevsun’s Board of Directors unanimously recommends that Nevsun shareholders tender their shares to accept the Offer. Nevsun’s Board of Directors continues to recommend that Nevsun shareholders reject the hostile take-over bid launched by Lundin on July 26, 2018 and not tender their shares to the Lundin offer, which will expire on November 9, 2018.
“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,” said Ian Pearce, Chair of Nevsun’s Board of Directors. “The all-cash consideration of C$6.00 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.”
“Zijin is a proven mining industry operator with a US$10 billion market capitalization and a demonstrated track record of successfully completing international transactions. The Board unanimously recommends that Nevsun shareholders tender their shares to accept this offer and receive the significant value that it represents.”
Chen Jinghe, Chairman of Zijin, added, “Nevsun 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.”
Zijin is looking to further extend the life of the Bisha mine in Eritrea and explore it for new deposits. The company’s objective at the Timok Project in Serbia will be to rapidly develop the Upper Zone and bring it into production, continuing to advance and define the world-class potential of the Lower Zone.
Among Zijin’s substantial global mining activities are strategic partnerships with Toronto-based Barrick Gold, related to the Porgera mine in Papua New Guinea; and Vancouver-based Ivanhoe Mines, related to the Kamoa-Kakula copper project in the Democratic Republic of Congo.