Nevsun Resources has announced that Zijin Mining Group has received one of the three required regulatory approvals from the People's Republic of China.
It has also received Canadian Competition Act clearance for Zijin’s proposed friendly takeover bid of Nevsun.
The PRC approval received is from the PRC’s National Development and Reform Commission (NDRC). The second PRC approval from the Ministry of Commerce (MOFCOM) is still pending. Once these two PRC regulatory approvals are in hand, Zijin will submit, as soon as practicable, an application to the State Administration of Foreign Exchange (SAFE) for the third and final PRC regulatory approval required as a condition of the Offer.
As previously disclosed, Zijin’s Offer for Nevsun is all cash consideration of C$6.00 per Nevsun share representing a premium of 57% over Nevsun’s unaffected closing price of C$3.82 on May 7, 2018, the day Lundin Mining Corporation (Lundin) first publicly announced its intention to acquire Nevsun. In addition, the Zijin Offer is C$1.25 per Nevsun share, or 26%, more than the C$4.75 per share hostile take-over bid for Nevsun launched by Lundin on July 26, 2018.
The transaction is also subject to approval under the Investment Canada Act and customary closing conditions. The Zijin Offer is not subject to any financing conditions. Nevsun will continue to work with Zijin to complete the transaction and will keep shareholders updated as conditions of the Offer are met.
Source: Company Press Release