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Nevsun, Zijin formally start takeover deal

China-based diversified miner Zijin Mining (SH:601899) has filed its takeover circular for Canada's Nevsun Resources (TSX:NSU) with securities regulators, signaling the formal start of the takeover deal.
Nevsun, Zijin formally start takeover deal Nevsun, Zijin formally start takeover deal Nevsun, Zijin formally start takeover deal Nevsun, Zijin formally start takeover deal Nevsun, Zijin formally start takeover deal

Nevsun's Timok Upper Zone copper project in Serbia

Staff reporter

The Nevsun board did the same, urging shareholders to tender their shares to the friendly C$1.86 billion (US$1.43 billion) offer, that would give Zijin control over the operating Bisha copper/zinc mine in Eritrea and the coveted Timok Upper and Lower copper projects in Serbia.

In what the Nevsun board branded an "excellent outcome for shareholders", shareholders will each receive $6 per share held. This reflects 26% more than the $1.25/share offered by Lundin Mining's hostile takeover bid on July 26, and 57% or $2.18 more than Nevsun's share price on May 7, the day Lundin first made public its overtures to acquire Nevsun.

In its circular, the Nevsun board outlines the clear path to closing the transaction — slated for completion on December 28 — since the offer by US$10 billion Zijin is not subject to any financing conditions.