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Enoch Yiu

A consortium led by Hong Kong-listed Zijin Mining said investors representing 38.67 per cent of Monterrico Metals  had accepted its  GBP94.6 million (HK$1.45 billion) takeover bid.

The  group said it would not increase the offer price even though the London-based company's largest shareholder demanded a better offer.

The consortium  has set  Friday  as the deadline for the rest of the shareholders to accept the offer, according to an announcement posted on the website of Alternative Investment Market (AIM) in London, where Monterrico is listed.

The Zijin consortium  will proceed with the deal as long as  50 per cent of  Monterrico's shareholders accept the offer, instead of the former threshold  of 70 per cent.

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 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.

The fund's adviser, Germany-based Wermuth Asset Management, indicated the fair value of Monterrico should be between US$500 million and US$1 billion, or  GBP9.76 to  GBP19.52 per share.

The bidders said:  'There will be no increase in the offer price of 350 pence per Monterrico share.'

The consortium also said it would  keep Monterrico's  listing on the AIM and would restrict its shareholding in the company to not more than 70 per cent of its issued share capital.

The 38.67 per cent acceptance  includes the 9.9 per cent shareholding held by five Monterrico board members, including chairman and chief executive Richard Ralph.

Monterrico  closed on  Friday at  GBP3.385, similar to the offer price which represents a 34 per cent premium to  its closing price of  GBP2.61 on October 19, the last business day before the offer became effective.



Zijin gets partial nod for Monterrico