$852m Allegiance takeover offer accepted
news.theage.com.au
Jinchuan Group Ltd, China's biggest nickel producer, has accepted Zinifex Ltd's $852 million takeover offer for Allegiance Mining NL, clearing the last hurdle in the bid for the junior.
Jinchuan has a 10.4 per cent interest in Allegiance and the Chinese group's acceptance will allow Zinifex to compulsory acquire the outstanding shares and to de-list the company.
Allegiance holds the Avebury nickel project in Tasmania, which is expected to produce about 8,500 tonnes of nickel in concentrate annually when it starts up this year.
Jinchuan has an agreement for the supply of nickel concentrate from the Avebury mine.
Zinifex chief executive Andrew Michelmore said the company viewed Jinchuan as a "strategic partner" and said there was "potential for expanding the relationship between the companies in relation to other base metal projects".
Oxiana Ltd and Zinifex have agreed to a $6 billion merger, creating the world's second largest zinc producer, with a significant position in copper, lead, gold and silver.
"The merged company will be a substantial producer of copper, nickel, and zinc which are all metals that are part of Jinchuan's business," Mr Michelmore said.
"These markets present multiple opportunities to grow together."
The combined group will have four operations in Australia and Asia, three near-term projects in development, combined cash on hand of about $2 billion and an organic growth pipeline spanning ten years. |
