Zhaojin Mining, via its subsidiary Zhaojin Capital, has once again extended the offer period under its takeover bid for Australia’s Tietto Minerals (ASX: TIE), in which it is currently the second-biggest shareholder with an approximate 7% equity stake.
On October 30, 2023, the Chinese gold miner lodged a bid of A$0.58 a share for the ordinary shares of Tietto that it does not own, which at the time represented a 36.5% premium.
However, Tietto, which began production at the Abujar gold mine in Côte d’Ivoire last January, recommended its shareholders to reject Zhaojin’s offer, stating that it “materially undervalued” the company and its project.
The West Africa-focused gold producer also said the offer had been “opportunistically timed” by Zhaojin as it came after an improvement in its flagship mine.
In a November exchange filing, Tietto said that independent expert Grant Thornton assessed the fair value of its shares to be in the range of A$0.79-A$0.93, valuing the company at up to A$1.1 billion. Zhaojin’s offer was valued at approximately A$629 million.
In its bid statement, Zhaojin said it believes this offer is fair value and that it has already received approval from Australia’s Foreign Investment Review Board for the deal. As such, the company has repeatedly extended the offer period for shareholders to accept the deal.
With the latest extension, the offer is now valid until 7 p.m. Sydney time on Friday, March 8, 2024, unless extended or withdrawn, Zhaojin stated on Thursday.
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