PCH has approximately 18.015% of the issued and outstanding common shares of First Quantum Minerals


Image: Jiangxi Copper has agreed to acquire stake in PIM Cupric in a deal worth $1.1bn. Photo: courtesy of Adam Radosavljevic from Pixabay.

China’s copper producer Jiangxi Copper (JCC) has signed an agreement to acquire entire equity interest in PIM Cupric Holdings (PCH) from Canadian investment company Pangaea Investment Management (PIM), for $1.1bn.

PCH has direct ownership of 124,198,371 common shares, which represents approximately 18.015% of the issued and outstanding common shares of First Quantum Minerals.

The transaction is executed through Jiangxi Copper’s wholly-owned subsidiary Jiangxi Copper (Hong Kong) Investment Company (JCCHK).

Jiangxi Copper said that the common shares were purchased at a price of $11.934 a share.

The transaction is expected to be closed by the end of this year. The sale forms part of Pangaea Investment Management’s reorganisation of holdings of the common shares.

Jiangxi Copper to asses  First Quantum’s financial condition

JCC is planning to assess, on an on-going basis, First Quantum’s financial condition, business operations and prospects, the common shares’ market price, transactions involving First Quantum undertaken or proposed to be undertaken by third parties, conditions in securities and debt markets generally, and other factors, prior to acquisition.

The transaction is subject to and conditional upon the satisfaction or waiver of the due diligence results conducted on PIM Cupric and its assets and liabilities.

Jiangxi Copper stated: “As at the date of this announcement, the approval, registration or filing with the relevant competent PRC authorities in respect of the Transaction have been obtained.”

PIM believes the acquisition of common shares is a part of JCC’s investment plan.

PIM said in a statement: “PIM understands JCC may change its plans and intentions at any time, as it deems appropriate.”

In September 2019, First Quantum Minerals confirmed it was in negotiations with Jiangxi for a potential sale of a minority interest in its Zambian copper assets.

Jiangxi Copper is a Sino-foreign joint venture joint-stock company that is incorporated in the People’s Republic of China (PRC).