Jiangxi Copper raises SolGold takeover offer
China’s Jiangxi Copper has increased its takeover bid for gold and copper miner SolGold to 28 pence per share, valuing the company at about £842 million ($1.13 billion), the companies announced on Dec. 12.
SolGold’s board indicated it is “minded to recommend” the revised offer to shareholders if Jiangxi makes a firm proposal on these terms, News.Az reports, citing Reuters.
Following the announcement, SolGold’s London-listed shares fell more than 5%, after having risen nearly 8% since the first offer was disclosed on Nov. 28.
The revised cash bid marks Jiangxi Copper’s third non-binding attempt to acquire the Ecuador-focused miner, representing a 7.7% increase over its previous 26 pence per share offer, which SolGold had rejected last month.
The rise in gold prices this year, driven by geopolitical tensions and economic uncertainty, has boosted demand for safe-haven assets and spurred consolidation activity in the mining sector.
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