Zhaojin Capital taps Standard Chartered for Tietto bid
afr.comZhaojin Mining has called up Standard Chartered and law firm Herbert Smith Freehills as it makes a play for tightly held West African gold miner Tietto Minerals.
Tietto Minerals has been getting Chinese attention over the past few years. Chris Ratcliffe/Bloomberg
The Chinese gold miner lobbed a conditional, non-binding indicative proposal for Tietto on Sunday to acquire 100 per cent of its shares for 58¢ per share – or a 38 per cent premium to the last close.
They have since stepped up to a binding takeover offer via an off-market bidders statement.
Zhaojin is Tietto’s second-largest shareholder behind Chijin International HK Limited, with around 7 per cent of its shares. It started building its stake in Tietto last year.
It’s the largest gold producer in China’s Shandong Province, an area known as the country’s “gold city” thanks to its ample reserves and long mining history.
Tietto, which owns the Abujar Gold Project in Côte d’Ivoire (Ivory Coast), has appointed Barrenjoey and Corrs Chambers Westgarth as its financial and legal advisers. Its shares last traded at 42¢ and has a market capitalisation around $437 million.
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