Australia's Tietto Minerals urges rejection of Chinese firm's takeover offer (updated)

Zhaojin Mining Industry Co

02/11/2023 22:59

(Updates with further details in paragraphs 3-6)
       Nov 3 (Reuters) - Tietto Minerals  TIE.AX  said on
Friday a takeover offer by a unit of China's Zhaojin Mining
Industry  1818.HK  "materially undervalues" the Australian gold
company.
    Tietto said it was recommending that shareholders to not
accept the A$629 million ($404.57 million) offer by Zhaojin
Capital to buy all the shares of the Australian miner that it
doesn't already own. 
    Tietto said the offer was been "opportunistically timed" by
Zhaojin as it came after an improvement in its flagship Abujar
gold mine in Ivory Coast.
        October was a record month for the mine, with about
12,057 ounces of gold recovered, according to Tietto.
    Under the terms of the offer, Zhaojin Capital, which already
owns about 7% of Tietto's shares, would buy the remaining 93%
stake for A$0.58 per share. That represented a 36.5% premium to
the stock's Oct 29 close. 
        The offer is subject to a number of approvals, including
from regulatory authorities in China and Ivory Coast. 

($1 = 1.5547 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru
Editing by Chris Reese and Paul Simao)
 ((Archishma.Iyer@thomsonreuters.com;))