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Perilya deal gets Chinese approval

14th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Chinese watchdog, the Guangdong Development and Reform Commission (GDRC), has approved Zhongjin Lingnan Mining’s proposed takeover of ASX-listed metals miner Perilya.

The GDRC approval was the main Chinese regulatory approval required for the takeover, and was a prerequisite for both the remaining Chinese regulatory approvals, being of the State Administration of Foreign Exchange, and the approval from the Ministry of Commerce.

Perilya’s board has thrown its weight behind the 35c-a-share offer, saying the offer price represented a 59% premium to the closing price of Perilya shares on August 30, and an 85% premium to the one-month volume-weighted average price.

Zhongjin has previously expressed its commitment to continue Perilya’s current operations in Australia and the Dominican Republic and to use its financial strength to underpin the takeover target’s investment and development plans.

The Chinese company would not only look to maintain the operations, but also to expand them where possible, while retaining all key personnel at both operating locations.

Edited by Creamer Media Reporter

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