Jiangxi Copper raises offer to acquire SolGold to $1.12bn

Jiangxi Copper, headquartered in China, has lifted its proposed acquisition price for SolGold, an Ecuador-focused gold and copper producer, valuing the company at approximately 842m, or $1.12bn. The revised approach increases the offer to 28 pence per share.

The announcement was made jointly by the boards of SolGold and Jiangxi Copper Hong Kong Investment Company, which is acting on behalf of Jiangxi Copper Company.

SolGolds board stated that it is inclined to support the revised terms and would recommend the proposal to shareholders should Jiangxi Copper move forward with a formal offer on this basis.

This marks the third non-binding proposal from Jiangxi Copper to acquire SolGold. The new price represents a 7.7 percent increase compared with the earlier 26 pence per share bid that was declined last month.

Rising gold prices during the year, influenced by geopolitical risks and ongoing economic uncertainty, have strengthened interest in safe-haven assets and accelerated merger and acquisition activity across the mining industry.

BHP Billiton, a wholly owned subsidiary of BHP Group, has delivered a non-binding letter of intent to Jiangxi Copper Company confirming its current support for the revised proposal. This support relates to its holding of 310,965,736 SolGold shares, equal to 10.3 percent of the companys voting rights.

Newmont has also submitted a letter of intent endorsing the updated offer, covering its 309,309,996 shares, which likewise represent 10.3 percent of SolGolds voting power.

Maxit Capital and associated entities have issued a similar letter of intent in favor of the revised bid, backing their combined holding of 153,366,663 shares, or 5.1 percent of the voting rights.

In addition, SolGold chief executive Nicholas Mather has expressed support for the proposal through a letter of intent covering his entire direct and indirect stake of 84,249,282 shares, amounting to 2.8 percent of the voting rights.

Jiangxi Copper Company has been a significant shareholder in SolGold since December 2022 and currently owns 365,757,587 shares, representing about 12.2 percent of the issued share capital.

With support confirmed through letters of intent from BHP, Newmont, Maxit Capital, and Nicholas Mather, shareholders representing a combined 40.7 percent of SolGolds issued share capital are currently aligned with the revised proposal.

Sources:

• Jiangxi Copper increases SolGold takeover bid to $1.12bn

Author: Logan Reeves
Logan Reeves is a sports analyst and journalist. He writes match reviews, conducts athlete interviews, and produces data-driven predictions.