Base metals producer Nevsun Resources (TSX:NSU) has once again dismissed a takeover offer by Lundin Mining (TSX:LUN), as it believes the bid ignores the fundamental value of the company and its assets.
Nevsun’s response comes a day after Lundin made a new offer, the second in three months to buy the base metals miner.
Chief Executive Officer Peter Kukielski said Lundin’s notional takeover offer represents only a 13 % premium to Nevsun’s shares trading price, which closed Monday at Cdn$4.2.
The Vancouver-based company’s statement comes a day after Lundin said it was taking another run at Nevsun by sweetening its offer. made its offer, its second in three months to buy Nevsun. The company said that it had not yet received a formal offer.
Lundin first approached Nevsun on February 7, submitting a new proposal on February 25 and yet another on April 3, all of which were rejected. In May, Lundin partnered with Euro Sun Mining a roughly $1.5-billion takeover offer that was a combination of cash as well as shares in both Lundin and Euro Sun. That bid was also rejected.
Lundin and its partner are after Nevsun’s large high-grade Timok copper-gold project in Serbia as well as the company’s other key asset — the Bisha copper-zinc mine in Eritrea.
In 2016, Lundin tried and failed to buy Timok from previous owner Freeport McMoRan.
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From:: Mining.com