China's Zhaojin raises stake in Australia's Tietto to 52.8% in takeover bid move (updated)

Zhaojin Mining Industry Co

01/05/2024 24:50

(Adds details on stake increase and background in paragraphs
2-6)
       May 1 (Reuters) - China's Zhaojin Capital, a unit of
gold miner Zhaojin Mining Industry  1818.HK , has raised its
stake in its Australian takeover target Tietto Minerals  TIE.AX 
to 52.8%, an exchange filing showed on Wednesday.
    The exchange filing showed that Zhaojin Capital voting power
was now at 52.8% from 42.5% earlier.
    The stake increase comes a day after the Perth-headquartered
gold miner called upon its shareholders to accept Zhaojin's
takeover bid that valued the company at A$733 million ($474.62
million). 
    Tietto also urged shareholders to sell their stake in the
company on-market "if the market price is not materially
different to the offer price."
    Tietto had indicated in its last press release that two of
its major shareholders might have accepted the Chinese suitor's
offer after a significant jump in the latter's voting power to
more than 42% as of April 29.
    Zhaojin declared its bid to be unconditional on April 24,
making it impossible for Tietto shareholders - who had already
accepted the offer - to now withdraw their acceptance.
    If the deal goes through, the takeover would help Zhaojin
Mining expand its business operations overseas. Tietto has
already received approval from Australia's Foreign Investment
Review Board.



($1 = 1.5444 Australian dollars)

 (Reporting by Poonam Behura; Editing by Pooja Desai and Rashmi
Aich)
 ((Poonam.Behura@thomsonreuters.com;))