Equinox Minerals Ltd
(ASX:EQN) has launched a friendly bid for Citadel Resource Group Ltd
(ASX:CGG) with an offer valuing Citadel at $1.25 billion.
The copper miner has proposed Citadel shareholders receive one Equinox share for every 14.3 Citadel shares they hold, in addition to 10.5 cents per Citadel share.
The Citadel board has recommended shareholders accept the scrip and cash offer. Adding, that the merger would create a major international copper company with a pipeline of growth opportunities in Southern Africa and the Middle East.
Dual-listed Equinox says after the transaction is complete it will own around 81 per cent of the combined group.
Equinox Minerals reported a profit of $124.33 million in the 2010 financial year.
