BRIEF: Jiangxi Copper offers to buy out SolGold for $905 million
Mining company Jiangxi Copper Co. Ltd. (0358.HK; 600362.SH) said on Sunday it has proposed to acquire the remaining 88% stake it doesn’t already own in copper and gold miner SolGold Plc (SOLG.L) for 26 pence ($0.34) per share, representing a premium to the stock’s recent trading levels.
Jiangxi Copper said it currently owns nearly 366 million shares in London-listed SolGold, equal to 12.19% of the company’s issued shares. The remaining 2.63 billion shares would cost Jiangxi about 684 million pounds ($905 million), based on the 26 pence price.
Jiangxi Copper added that its offer was still at the non-binding stage, and was rejected by SolGold’s board.
“The company further reserves the right to adjust the terms of the potential acquisition accordingly following any announcement, declaration, confirmation in relation to any dividend or other distribution which is paid or becomes payable by the target after the date of this announcement,” it said.
Jiangxi Copper’s Hong Kong-listed stock was up about 8.1% in Monday afternoon trade in Hong Kong at HK$33.16, and is up 136% this year. SolGold’s stock rose 13% on Friday to close at 29.55 pence, about 13.7% above the offer price. The stock previously traded in a range between 17 pence and 20 pence in the first three weeks of November.
By Doug Young
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