Minmetals resources to buy 6.5 billion dollars for Australian copper miners

Yesterday (April 5), "Daily economic news" reporter from Minmetals Resources Limited (hereinafter referred to Minmetals Resources) official website learned that Minmetals company-Minmetals Resources 4th publicly announced that the total cash of about 6.5 billion U.S. dollars offer to buy Equinox minerals the remaining interests,　　The company is expected to formally launch an offer within 3 weeks and complete its acquisition plan by the middle of the year.　　The reporter learned that if the acquisition succeeds, it will be the largest Chinese companies to Australia resource companies to undertake the biggest acquisition, and this will become China's fourth largest overseas mergers and acquisitions case.　　On the same day, the industry interviewed by reporters said that the significance of the acquisition is mainly to increase the resources of the five mineral resources, the entire copper industry is not very big impact. Minmetals resources to buy mining giant April 4, Minmetals Resources issued a notice that the company intends to prepare a total of $7 cash per share of about 6.3 billion Canadian dollars (about USD 6.5 billion) to acquire equinoxminerals all outstanding common Shares,　　The purchase price per share is more than equinoxminerals on April 1 on the Toronto Exchange, the closing price premium of 23%. Andrewmichelmore, executive director and chief executive officer of Minmetals Resources, said publicly that the Equinox's offer was in line with the company's development strategy and could further enhance the company's global portfolio of production projects, "for Equinox shareholders, the offer is attractive,　　This provides not only a significant premium to Equinox shareholders and certainty of the value of the shares, but also a better solution than Equinox's proposal to buy Lundin. Public information shows that Equinox is an international mining company listed in Canada and Australia, and its Lumwana mine has a large copper mine in Zambia,　　With an annual output capacity of 145,000 tonnes, it is planned to expand to 260,000 tonnes in the next 5 years, and the Jabalsayid project in Saudi Arabia will have an average annual copper production of about 60,000 tonnes and is scheduled to start production in 2012.　　The reporter learned that the above related acquisitions still need to be approved by the NDRC, the major shareholder Minmetals Group and the Australian authorities. There is still an "obstacle" to the acquisition of the Equinox bid has been the best price, no intention to raise prices.　　"April 4, Andrewmichelmore also said that the source of the acquisition will include the company's cash reserves, loans from Chinese banks and China's financial investment in Minmetals, and other funds raised. April 5, China Steel Network analyst Shini said that if the acquisition succeeds, Minmetals Resources will obtain equinox hands rich copper resources. "Our government has been actively encouraging domestic enterprises to acquire overseas resources, may be in loans and policies to give certain concessions, coupled with strong financial backing, Minmetals resources of the acquisition is worth looking forward to." "Equinox4 Day also issued a brief statement that the board will soon meet to assess the bid, is expected in the next few daysTo provide the latest information.　　Although Minmetals has shown enough confidence in the acquisition, it still faces a number of obstacles to its path to success. The reporter learned that at the time of the offer of Minmetals resources, Equinox also launched a hostile takeover of Lundin, a Canadian mining company. More urgently, Equinox shareholders will vote on the acquisition of the latter on the following week, April 11.　　Therefore, Minmetals resources to the above mergers and acquisitions to truly grasp the initiative, but also must force equinox to make corresponding changes. Minmetals Resources Management said to the media, "in order to enable access to the five mineral resources offered by the superior conditions, Equinox shareholders should be held on April 11 equinox in the acquisition of the Lundin of the General Assembly vote against, and the use of the stock to support Minmetals resources of the takeover offer."　　"It is worth noting that, unlike previous acquisitions by Chinese companies, the Australian government is unlikely to obstruct, although Equinox is listed in Australia, but most of its assets are in Africa." The situation of difficult to change copper mine external high dependence if the above acquisition can be realized, according to the existing capacity calculation, Minmetals resources will be the amount of copper resources per year about 200,000 tons. "The significance of the acquisition is mainly to increase their own resources, but the entire copper industry is not a big impact."　　An unnamed analyst said in an interview with reporters. "If the acquisition succeeds, there may be some easing of domestic copper demand, but as a trading enterprise type of listed companies, Minmetals resources in the reduction of domestic copper dependence is not strong." "said Mr. Guo, an analyst with steel wire and copper industry. It is reported that the domestic copper more and more foreign dependence, copper imports more and more close to the situation of iron ore imports, "China's copper imports every month is basically about 300,000 tons, at least 200,000 tons."　　"Mr. Guo said. Related news Hunan Nonferrous metal exploration company 386 million yuan acquisition of the total purchase of the Australian metal exploration company three years ago after the purchase of 537 million Yuan Abramininglimited (hereinafter referred to as Abra) 74.57% shares, Hunan nonferrous (02626, HK) announced on the evening of April 3 that the company would take a total of $0.4 per share (2.69 RMB) to buy Abra, reflecting the market value of Abra of about 386 million yuan.　　The announcement also disclosed that the tender funds will be paid through Hunan nonferrous cash reserves. Abra is a mineral metal resource company located in Western Australia, mainly exploiting wholly-owned lead, silver, zinc, copper, gold deposits and southbangemal projects located in the periphery of Western Australia.　　Because the Abra deposit contains abundant resources and good project development prospects, Hunan Nonferrous Metals hope to further increase the control over Abra. April 5, "Daily economic news" reporter learned that the current Hunan Nonferrous is Abra's largest shareholder. Starting from March 2008, HunanNonferrous began to "plan" to acquire Abra shares.　　By 2008, the company had gained about 74.57% per cent of the equity and became a Abra holding company. It is reported that in March this year, Hunan Nonferrous had to buy 0.32 Australian dollars per share. Abra received Hunan nonferrous purchase plan, immediately set up not including Hunan Nonferrous appointed to Abra board members of the independent Board of Directors to consider the terms of offer.　　After communication, the final decision to increase the share price to 0.4 Australian dollars. Today, the 0.4 AUD per share of the purchase scheme compared to the offer of the previous trading day (March 29) The closing price of 0.2 Australian dollars, has a 1 time-fold premium.　　This means that Hunan nonferrous all buy Abra only one step away. Hunan Nonferrous and Abra Management all said that the current acquisition price is very attractive to shareholders and option holders, will make the acquisition very smooth. "The board welcomes Hunan's coloured overweight offer, and the implementation of the increase will not only provide Abra shareholders with the opportunity, but also enhance the company's ability to continue to develop Mulgul projects and capture other opportunities." Abra Chairman Robertanderson said earlier. Responsible Editor: NF015