https://www.engineeringnews.co.za

China's Zhaojin wins control of Australia's Tietto Minerals in $475m deal

2nd May 2024

By: Reuters

  

Font size: - +

China's Zhaojin Capital has won control of Australia's Tietto Minerals after a protracted six months takeover tussle that values the gold producer at A$733-million ($474.62-million), according to a regulatory filing on Wednesday.

Zhaojin Capital, a unit of Hong Kong-listed Zhaojin Mining 1818.HK, now has 52.8% voting power, it said in the filing, up from 42.5% previously.

Tietto, which is Australian listed and headquartered, produces gold from its Abujar project in Côte d'Ivoire.

Zhaojin's victory to control more than half the company comes a day after the Tietto's board called upon its shareholders to accept Zhaojin's takeover bid.

The original offer of A$0.58 per share was increased on April 15 to A$0.68 per share and declared "best and final", which meant Zhaojin could not increase its bid again.

Tietto's board said it believed the bid still undervalued the company, but given key shareholders had accepted the offer it would change its official recommendation.

Tietto chairperson Francis Harper, CEO Matthew Wilcox and nonexecutive director Paul Kitto said in a filing they intended to sell their stock on market if the price was not very different to Zhaojin's offer. The trio will accept the Zhaojin offer if it is higher than the market price when the offer closes, they added.

Tietto had said earlier that two of its major shareholders might have accepted the Chinese suitor's offer after a significant jump in the latter's voting power to more than 42% as of April 29.

If the deal goes through, the takeover would help Zhaojin expand its mining operations overseas. The Chinese company has already received approval from Australia's Foreign Investment Review Board.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

AirNox Pty Ltd
AirNox Pty Ltd

AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...

VISIT SHOWROOM 
ABB Electrification
ABB Electrification

Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.05 0.85s - 140pq - 2rq
Subscribe Now