Monterrico investors accept takeover by Zijin

A consortium led by Hong Kong-listed Zijin Mining said investors who owned 13 per cent of Monterrico Metals had accepted its GBP94.6 million (HK$1.45 billion) takeover, three days after the London-based miner's largest shareholder said it would reject the deal.

Acceptances were received from holders of 3.48 million Monterrico shares by 5pm on Thursday, the consortium said yesterday. Holders of a further 1.37 million shares, representing a 5.2 per cent stake, also accepted the offer and were awaiting verification, it added.

Zijin, which has a 45 per cent stake in the consortium, together with the mainland's second-largest copper producer Tongling Nonferrous Metals and Shanghai-listed investment firm Xiamen C&D, on February 5 announced a cash offer of GBP3.50 per share for Monterrico, the owner of the untapped Rio Blanco copper and molybdenum mines in Peru.

The offer represents a 34 per cent premium to Monterrico's closing price of GBP2.61 on October 19, the last business day before the offer became effective.

Shares of Monterrico, which is listed on London's Alternative Investment Market, have traded at about GBP3.50 over the past few days.

The Greater Europe Fund, Monterrico's largest shareholder with a 7.27 per cent stake, had said the offer undervalued the miner and would reject it.