China's Zhaojin Mining falls after takeover offer for Tietto at premium

Zhaojin Mining Industry Co

30/10/2023 03:41

** Shares of Chinese gold miner Zhaojin Mining Industry Co
Ltd  1818.HK  fall as much as 4.1% to HK$10.28, their lowest
since Oct 6
    ** Stock marks the biggest one-day drop since Oct 3 if
losses hold; fourth biggest-loser in material index  .HSCIM  
    ** Australian gold explorer Tietto Minerals Ltd  TIE.AX  on
Monday said it received an off-market takeover offer from a unit
of its second largest shareholder Zhaojin Mining Industry Co Ltd
 1818.HK  to acquire all shares it does not already own in the
company for A$629 mln ($399 mln) 
    ** The unit Zhaojin Capital will acquire the remaining near
93% shares for A$0.58 per share, representing a 36.5% premium to
the previous close
    ** Zhaojin Mining says the deal will be funded by internal
cash reserves and will help expanding its business overseas
while accelerating development of Tietto's Abujar Gold Mine,
exploration in Côte d'Ivoire, Liberia and other regions 
    ** Tietto's shares soar 34.1%  
    ** Hong Kong's material index  .HSCIM  rises 1.7% while Hang
Seng Index  .HSI  slips 0.5%
    ** Stock of Zhaojin Mining up 22.1% YTD

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))