BIZCHINA / Center |
Group advances in bid for mining unitBy Chanyaporn Chanjaroen (Shanghai Daily)Updated: 2007-03-26 09:36 The Zijin Consortium, a group of Chinese companies bidding to take over London-based miner Monterrico Metals Plc, said it has support from investors representing 13 percent of the target company. Acceptances were received from the holders of 3.48 million Monterrico shares, Zijin said on Friday. Zijin said it also received acceptances, which are awaiting verification, from the holders of another 1.37 million shares, or 5.2 percent of the stock. Zijin is offering 350 pence a share in cash for Monterrico, and needs acceptances from investors holding at least 70 percent of the company. The deadline for acceptances is today. "It's quite common in cases like these that offers can be extended," Chairman Richard Ralph said in earlier. Zijin's offer is "fair and reasonable, and we commended it to shareholders," he said. Greater Europe Fund Ltd, Monterrico's biggest shareholder with a 7.3 percent stake, said last week that it rejected the offer because the bid was 2.5 times below "fair value." Copper search Monterrico's Rio Blanco copper project in Peru would have an estimated average annual production of 191,000 metric tons of copper if built. Zijin is among Chinese companies searching for sources for copper to help supply the country with the metal amid booming demand in construction and manufacturing. Shares of Monterrico closed one pence, or 0.3 percent, lower at 352.5 pence in London on Friday, valuing the company at 92.7 million pounds.
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