China's Zhaojin wins control of Australia's Tietto Minerals in $475 mln deal (updated)

Zhaojin Mining Industry Co

01/05/2024 01:53

(Adds deal details from paragraph 3 onward)
    By Scott Murdoch
       SYDNEY, May 1 (Reuters) - China's Zhaojin Capital has
won control of Australia's Tietto Minerals  TIE.AX  after a
protracted six months takeover tussle that values the gold
producer at A$733 million ($474.62 million), according to a
regulatory filing on Wednesday.
    Zhaojin Capital, a unit of Hong Kong-listed Zhaojin Mining
 1818.HK , now has 52.8% voting power, it said in the filing, up
from 42.5% previously.
    Tietto, which is Australian listed and headquartered,
produces gold from its Abujar project in Ivory Coast.
    Zhaojin's victory to control more than half the company
comes a day after the Tietto's board called upon its
shareholders to accept Zhaojin's takeover bid. 
    The original offer of A$0.58 per share was increased on
April 15 to A$0.68 per share and declared "best and final",
which meant Zhaojin could not increase its bid again.
    Tietto's board said it believed the bid still undervalued
the company, but given key shareholders had accepted the offer
it would change its official recommendation.
        Tietto Chairman Francis Harper, CEO Matthew Wilcox and
non-executive director Paul Kitto said in a filing they intended
to sell their stock on market if the price was not very
different to Zhaojin's offer. The trio will accept the Zhaojin
offer if it is higher than the market price when the offer
closes, they added.
    Tietto had said earlier 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.
    If the deal goes through, the takeover would help Zhaojin
expand its mining operations overseas. The Chinese company has
already received approval from Australia's Foreign Investment
Review Board.
($1 = 1.5444 Australian dollars)

 (Reporting by Scott Murdoch in Sydney, Additional reporting
Poonam Behura in Bengaluru; Editing by Pooja Desai, Rashmi Aich
and Jamie Freed)
 ((Poonam.Behura@thomsonreuters.com;))