Australia's Tietto Minerals gets $399 mln buyout bid from Zhaojin Mining, shares soar (updated)

Zhaojin Mining Industry Co

30/10/2023 01:04

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      Tietto shares surge nearly 33% in early trade
    

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      Stock heads for best session since March 2020
    

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      Offer price of A$0.58/share represents 36.5% premium
    

  
 (Adds shares moves, details of deal in paragraphs 2-8)
       Oct 30 (Reuters) - Tietto Minerals  TIE.AX  said on
Monday it received a takeover offer from Chinese gold miner
Zhaojin Mining Industry  1818.HK  to buy all shares it does not
already own in the Australian gold explorer for about A$629
million ($398.79 million).
    Shares of Tietto Minerals rose as much as 32.9% to A$0.565
in early trade, heading for their best day since March 26, 2020.
    Under the offer, Zhaojin Capital, a unit of Zhaojin Mining
which already owns 7.02% in Tietto, will acquire the remaining
near 93% shares for A$0.58 per share, representing a 36.5%
premium to the stock's last close. The offer values the
Australian gold explorer at A$655.4 million ($415 million).
    Tietto, which produces gold from its Abujar project in Ivory
Coast, said it would "carefully consider the indicative proposal
and provide shareholders with their advice in due course".
    The acquisition will help Zhaojin Mining to expand its
business overseas and boost profitability, the Chinese gold
miner said in a statement.
    Zhaojin Mining said subject to deal completion, it would
support the development of Tietto's Abujar gold mine and
exploration activities in West Africa.
    The offer, which has already been approved by Australia's
foreign investment review board, is subject to certain
regulatory approvals and Zhaojin Mining getting at least 50.1%
relevant interests in shares of Tietto.
    The deal underscores rising interest in Australian resources
firms, especially in battery metals companies, as lower
valuations and cash needs make them attractive prospects for
some of the world's top miners.
    
($1 = 1.5773 Australian dollars)

 (Reporting by John Biju in Bengaluru; Editing by Diane Craft,
Lisa Shumaker and Subhranshu Sahu)
 ((John.Biju@thomsonreuters.com;))