Australia's Tietto urges shareholders to accept Zhaojin's $480 mln offer or sell shares (updated)

Zhaojin Mining Industry Co

30/04/2024 01:28

(Adds details in paragraphs 2-5)
       April 30 (Reuters) - Australia's Tietto Minerals
 TIE.AX  on Tuesday urged its shareholders to accept Zhaojin
Capital's A$733 million ($480.41 million) bid or sell their
shares on-market "if the prevailing market price is not
materially different to the offer price."
    Gold producer Tietto had previously rejected an A$0.68
per-share takeover bid from Zhaojin Capital, a unit of Chinese
gold miner Zhaojin Mining Industry  1818.HK .
    Tietto said two of its major shareholders may have accepted
Zhaojin's latest offer, given the suitor's voting power in the
company was "in excess of 42%" as of April 29.
    "Based on these acceptances, it appears clear that certain
of Tietto's key shareholders have accepted into Zhaojin's offer
such that there is now a real risk that Zhaojin can control the
composition of Tietto's Board," the company said in a statement.
    Tietto said its directors still believe that Zhaojin's offer
was opportunistically timed and materially undervalued the
company.

($1 = 1.5258 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru; Editing by Subhranshu
Sahu)
 ((Poonam.Behura@thomsonreuters.com;))