One of China’s largest gold producers Zijin Mining Group has launched a takeover offer for Australian copper/gold miner Indophil Resources NL
(ASX:IRN).
The Chinese company will make a cash offer for all issued shares in Indophil at $1.28 a share, valuing Indophil’s share capital at around $545 million.
In a statement this morning Indophil says its board unanimously recommends that shareholders accept the offer in the absence of a superior proposal.
The offer price represents an 18% premium to the closing price of Indophil shares of $1.085 on November 26, the last day of trade prior to the announcement of the offer.
Indophil chairman Brian Phillips says this is an excellent outcome which unlocks value for the company’s shareholders from its minority ownership position in the Tampakan Copper-Gold Project.
Mr Phillips says Zijin is well positioned to fund its share of Tampakan’s capital expenditure estimate of US$5.2 billion.
Indophil Resources has posted losses in the last couple of years.
