[Miningmx.co] — Miner Metorex said on Tuesday it has received a better takeover bid offer from the Chinese Jinchuan Group than that of Brazilian mining company Vale.
“Vale is now being afforded an opportunity to match or better the Jinchuan offer prior to any further advances in this process,” Metorex chairman Rob Still said in a statement.
Jinchuan, China’s largest producer of nickel, cobalt and platinum group metals and one of the top three producers of refined copper, has made a cash offer of R8.90 a share.
Vale, the world’s largest iron producer, made an offer, announced in April, to acquire all of Metorex’s fully diluted shares for R7.35 a share.
“The independent board has determined, after taking all aspects of the Jinchuan Firm Intention into consideration, that the Jinchuan offer constitutes a superior proposal to that received from Vale SA, which is the subject of a circular and general meeting scheduled for 22 July 2011,” Still said.
He said Metorex had been approached by various parties interested in buying it “given its critical mass, managerial record and strategic platform to operate and develop future mines in the Central African Copper Belt”.
Vale has been given until July 15 to match or better the Jinchuan offer.
Vale’s chief financial officer Guilherme Cavalcanti told Bloomberg that his group was not interested in a bidding war.
“We aren’t concerned about the bidding war because we have our limit on price,” Cavalcanti said. “And we will not go to a bidding war.”
JSE-listed Metorex owns the Ruashi copper and cobalt open-pit mine in the Democratic Republic of the Congo and the Chibuluma underground copper mine and the Sable zinc operation in Zambia.
