Nevsun Rejects $1.16Bn Takeover Proposal
Nevsun shareholders were to receive C$5 ($3.88) for every Nevsun share currently held under the proposed offer, comprising C$2 ($1.55) each in cash and shares provided by Lundin, as well as C$1 ($0.77) in shares of Euro Sun.
Lundin noted that repeated attempts to persuade Nevsun into accepting the offer did not achieve the desired results.
The company previously made two initial offers to Nevsun in February this year, which were followed by a proposal on 3 April to acquire Nevsun’s European assets, including the Timok project.
After the proposals were rejected, Lundin partnered with Euro Sun to make a fresh offer on 30 April, which covered the acquisition of all of Nevsun’s outstanding common shares.
Lundin Mining president and CEO Paul Conibear said: “Given the significant near-term financing needs of the Timok project and our strong balance sheet, the timing is ideal for Lundin Mining to acquire the Timok project and bring it into production as soon as possible.
“After months of attempting to reach an agreement, we are disappointed that Nevsun has prevented its shareholders from considering our premium proposals and at this point in time.