Nevsun to refuse Lundin & Euro Sun’s bid for its zinc & copper assets
Category: #world  By Ojaswita Kutepatil  Date: 2018-05-09
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Nevsun to refuse Lundin & Euro Sun’s bid for its zinc & copper assets

Mining industry major Nevsun Resources Ltd., in its recent public announcement has revealed that it will be rejecting the takeover proposal of over USD 1.5 billion from the Canadian miner Lundin Mining Corp., & Euro Sun Mining. The company however will be welcoming the deal if Lundin dumps its junior collaborator Euro Sun, reports sources.

Nevsun’s chief executive Peter Kukielski affirmed that the company was always clear on its terms of agreement with Lundin. The company will be only wanting Lundin’s shares and cash, and literally nothing beyond that, he asserts.

According to Peter Kukielski, the offer worth USD 5 per share ‘substantially undervalues’ the base metals company and its high-grade Timok copper & gold project in Serbia.

Sources reveal that one of the key concerns with the proposal is the partaking of Euro sun, whose market value is over USD 79 million – near to one fourteenth the size of Nevsun. As per Mr. Kukielski, Euro Sun would need to raise a large amount of equity to finance the deal, in turn lowering its share price and ultimately rendering the deal worthy than it is currently. He further said that Euro Sun’s participation will also to lead to a USD 100 million tax bill that would be significantly incurred by Nevsun’s stakeholders.

In a statement, Mr. Kukielski claimed that he has left the ball in Lundin’s court to make an offer for the mining major that delivers value.

In the recent trading, Nevsun shares climbed 16.8% to close at USD 4.46 per share, making it stand midway between its former closing value and the offer price.

For the record, Nevsun operates two main assets that include the Bisha zinc and copper mine in Eritrea and Timok. Sources cite that under the terms of the proposal, Lundin would own & develop the Timok mine, while Euro Sun would work on the Eritrean mine.



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Ojaswita Kutepatil

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Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, presently develops content for Market Size Forecasters, Algosonline, and other similar platforms. Having had a prior experience in Business Development and Technical Engineering, she now pens down articles pe...

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