Minmetal's takeover of Anvil Mining hits snag
It seems Minmetal's $1.3 billion takeover offer of Africa-focused copper miner Anvil Mining may not be completed if Anvil fails to agree with its partner Gécamines on contractual arrangements.
HONG KONG (Reuters) -
Africa-focused copper miner Anvil Mining Ltd said that Minmetals Resources Ltd's (MMR) $1.3 billion takeover offer may not be completed if Anvil fails to agree with its partner Gécamines on contractual arrangements.
State-owned Congo miner La Générale des Carrières et des Mines Sarl (Gécamines) told Anvil that the completion of Minmetal's takeover of Anvil would result in a review of the financial terms of the lease agreement for the Kinsevere Project, but Anvil said it did not agree with Gecamines.
Anvil and its advisors would continue to discuss the matter with Gécamines and Minmetals, it said in a statement on Monday.
"However, in the absence of a solution that does not result in any material amendments to the contractual agreements with Gécamines, there is a risk that MMR and the offeror may not complete the Offer," Anvil said.
Minmetals also said it was a condition of the offer that the Gecamines issues described in the Anvil statement be resolved on terms satisfactory to Minmetals.
Trading in the company's shares was expected to resume on Tuesday morning after being suspended on Monday pending the announcement.
For company statement, please read here (Reporting by Alison Leung; Editing by Chris Lewis)