Chinese firm eyes $160m offer for Inova
PERTH (miningweekly.com) – China’s Shanxi Donghui Coal Coaking & Chemicals Group is planning to launch a $160-million offer for ASX- and TSX-listed Inova Resources.
Inova, formerly known as Ivanhoe Australia, on Wednesday announced that its largest shareholder, the Rio Tinto-owned Turquoise Hill Resources, had agreed to sell an initial 14.9% of its 56.2% shareholding in Inova, at a cash price of 22c a share.
Shanxi Donghui stated that the offer was a 55% premium to the three-month volume-weighted average price of Inova’s shares on the ASX, and a 29% premium to the share price on August 20.
The takeover was subject to a number of conditions, including a 51% minimum acceptance condition, as well as regulatory approval from both the Australian and Chinese regulatory bodies.
Once a 90% acceptance threshold is reached, Shanxi Donghui will move to a compulsory acquisition of the remaining shares.
Inova owns the Osborne copper/gold mine, as well as the Mount Elliott copper/gold project and the Merlin molybdenum project, in Queensland.
Earlier this month, Inova warned of an impairment charge of between A$40-million and A$45-million on its flagship Osborne project, as commodity prices continued to decline.
Shanxi Donghui said that the proposed takeover provided Inova shareholders with certainty of value at an attractive, risk-free, cash premium for their investment.
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