Minmetals bids US$6.5b for Canadian Equinox
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Minmetals Resources Limited made a US$6.5 billion offer to acquire Equinox Minerals Limited. |
Minmetals Resources Limited, the Hong Kong-listed arm of China Minmetals Corporation, has launched a US$6.5 billion bid for Canadian mining company Equinox Minerals Limited.
Minmetals Resources proposed to buy all outstanding common shares of Equinox it does not own for C$7 (US$7.2) per share in cash, according to a statement filed to the Hong Kong stock exchange. The price offered is 23 percent higher than the closing price of Equinox shares of C$5.71 (US$5.9) on April 1.
The acquisition of Equinox would help increase Minmetals Resources' copper deposits. Equinox's assets are in Africa and the Middle East. The company's Lumwana copper mine in Zambia currently produces 145,000 tons of copper each year and has a stated mine life of 37 years. Equinox plans to expand Lumwana's production to 260,000 tons in the next five years. Equinox also has a copper mine project in Saudi Arabia, with a predicted production of 60,000 tons of copper per year. The project is expected to begin production in 2012.
Minmetals Resrouces currently holds 4.2 percent of Equinox's shares. The investment in Equinox is in line with its long-term strategic development plan, Minmetals Resources said. Once the deal goes through, Minmetals Resources will become the 14th largest copper miner.
China's business press carried the story above on Wednesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
