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Looks like those who held on might get a few more cents off the back of this.[ATTACH=full]166263[/ATTACH]Among the reasons in a strongly worded missive Street Talk has been told will circulate as early as today is concern that Zhaojin’s bid was opportunistically timed after a slower ramp-up at the company’s Abujar gold mine in Côte d’Ivoire in the first half of the last financial year.[ATTACH=full]166264[/ATTACH]Street Talk first reported the approach from Zhaojin, which has called in Standard Chartered and Herbert Smith Freehills for advice, in late October. The bid, at 58¢ per share, was at a 38 per cent premium to the last close.Shares last traded at 60¢.Tietto has appointed Barrenjoey and Corrs Chambers Westgarth.Tietto will this week tell its shareholders that it understands its two other major shareholders – Chifeng Jilong Gold Mining and Kongwell Management, with 18.7 per cent of the company between them – will not be voting in favour of Zhaojin’s offer as the price is too low. Cryptically, the company will also tell investors they may be at risk of missing out on a higher price from an unnamed, third party if they take the money.Sources said an independent expert – Grant Thornton – had concluded Tietto shares were worth between 79¢ and 93¢, which meant the Zhaojin offer was not fair – and not reasonable. In any case, the company has previously argued, the Abujar project is back on track after the end of the wet season, generating cash flows of more than $18 million in October.Zhaojin Mining is one of the largest gold mining, processing and smelting operations in China. It has been listed on the Hong Kong Stock Exchange since 2006, but any takeover of Tietto will have to be approved by China’s National Development and Reform Commission and Ministry of Commerce. Any deal would also require the tick-off from Côte d’Ivoire’s Ministry of Mines, Petroleum and Energy.In October, Harper told investors that the board “strongly encourage shareholders to wait until the Target’s Statement is available, and to carefully review its contents before making any decisions”.It looks like that time has arrived.
Looks like those who held on might get a few more cents off the back of this.
[ATTACH=full]166263[/ATTACH]
Among the reasons in a strongly worded missive Street Talk has been told will circulate as early as today is concern that Zhaojin’s bid was opportunistically timed after a slower ramp-up at the company’s Abujar gold mine in Côte d’Ivoire in the first half of the last financial year.
[ATTACH=full]166264[/ATTACH]
Street Talk first reported the approach from Zhaojin, which has called in Standard Chartered and Herbert Smith Freehills for advice, in late October. The bid, at 58¢ per share, was at a 38 per cent premium to the last close.
Shares last traded at 60¢.
Tietto has appointed Barrenjoey and Corrs Chambers Westgarth.
Tietto will this week tell its shareholders that it understands its two other major shareholders – Chifeng Jilong Gold Mining and Kongwell Management, with 18.7 per cent of the company between them – will not be voting in favour of Zhaojin’s offer as the price is too low. Cryptically, the company will also tell investors they may be at risk of missing out on a higher price from an unnamed, third party if they take the money.
Sources said an independent expert – Grant Thornton – had concluded Tietto shares were worth between 79¢ and 93¢, which meant the Zhaojin offer was not fair – and not reasonable. In any case, the company has previously argued, the Abujar project is back on track after the end of the wet season, generating cash flows of more than $18 million in October.
Zhaojin Mining is one of the largest gold mining, processing and smelting operations in China. It has been listed on the Hong Kong Stock Exchange since 2006, but any takeover of Tietto will have to be approved by China’s National Development and Reform Commission and Ministry of Commerce. Any deal would also require the tick-off from Côte d’Ivoire’s Ministry of Mines, Petroleum and Energy.
In October, Harper told investors that the board “strongly encourage shareholders to wait until the Target’s Statement is available, and to carefully review its contents before making any decisions”.
It looks like that time has arrived.
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