Gold refiners Valcambi and Asahi make separate bids for bankrupt U.S. rival- sources

Rajesh Exports

30/01/2019 17:51

By Peter Hobson
    LONDON, Jan 30 (Reuters) - Two of the world's largest
precious metals refiners, Valcambi and Asahi, are separately
bidding for the assets of their bankrupt Miami-based rival
Republic Metals Corporation (RMC), two sources familiar with the
matter said on Wednesday.
    The two companies will go head to head in an auction in a
New York bankruptcy court on Thursday, the sources said. 
    Court documents confirmed that the auction was scheduled for
Thursday. Valcambi and Asahi did not comment. RMC and its
lawyers did not respond to requests for comment. 
    RMC is one North America's largest precious metals
refineries and filed for bankruptcy in November.
    Buying its assets would enable Valcambi, which is owned by
Indian jeweller Rajesh Exports  REXP.NS  and whose precious
metals refinery in Switzerland is the world's largest, to expand
into the Americas. 
    For Asahi, which has plants in Canada, the United States,
Mexico, Chile and Japan and is owned by Japan's Asahi Holdings
 5857.T , it would cement the company's position in the region.
     Asahi is already the largest refiner of gold mined in the
Americas. 
    The sale comes amid a glut of global refining capacity that
has helped to push down refining fees for many precious metals
refiners in recent years. 
    Reuters reported earlier this month that Valcambi, which 
sought to buy RMC before it declared bankruptcy, had made a $16
million offer recognised by the court as a stalking horse bid.
 urn:newsml:reuters.com:*:nL8N1Z961B
    That means an opening offer from Asahi would have to be
around $580,000 higher than Valcambi's to be accepted by the
court. The two companies could then raise their offers. 
    RMC refines gold and silver and also processes carbon. Other
bidders have made offers for the carbon assets, while Valcambi
and Asahi have bid for the entire company, the sources said.
    

 (Reporting by Peter Hobson; Editing by Veronica Brown and David
Evans)
 ((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))