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Zhaojin Capital, a subsidiary of the Hong Kong-listed company Zhaojin Mining, stated in a filing that it currently holds a 52.8% voting stake in Tietto Minerals, an Australian-listed company headquartered in Australia, up from its previous 42.5% stake. Tietto Minerals’ Abujar gold project is a significant gold producer with an expected annual production of 170,000 ounces. Additionally, Zhaojin Mining mentioned that the Abujar gold mine has significant exploration and development potential, with the possibility of extending the mine’s lifespan.
In a regulatory filing submitted on Wednesday, Zhaojin Capital secured control of Tietto Minerals after a six-month acquisition battle, valuing the gold producer at 733 million Australian dollars (approximately 474.62 million US dollars).
Following a one-day period during which Tietto Minerals’ board urged shareholders to accept Zhaojin’s takeover offer, Zhaojin gained control of more than half of the company’s shares. The initial bid of 0.58 Australian dollars per share was raised to 0.68 Australian dollars on April 15 and was declared the “best and final” offer, indicating Zhaojin will not increase the bid further. Despite Tietto Minerals’ board seeing the acquisition price as undervaluing the company, they indicated a potential change in recommendation given that major shareholders had accepted the offer.
Tietto Minerals’ Chairman Francis Harper, CEO Matthew Wilcox, and non-executive director Paul Kitto stated in a document that they plan to sell their shares on the market if the price is not significantly different from Zhaojin’s offer. They added that if Zhaojin’s acquisition price is higher than the market price at the conclusion of the acquisition, they will accept the offer.
Earlier, Tietto Minerals had indicated that following a significant increase in the Chinese acquirer’s voting stake to over 42% as of April 29, two major shareholders might have already accepted the Chinese acquirer’s offer.
If the deal goes through, the acquisition will assist Zhaojin in expanding its overseas mining operations. The Chinese company has already received approval from the Foreign Investment Review Board of Australia.
