Australian zinc miner CBH weighs A$148 million Nyrstar offer
11 Jan 2010
Nyrstar NV, a leading global multi-metals company, has offered 13.5 cents per share for Australian zinc miner CBH Resources Ltd., valuing the company at A$147.8 million ($137 million).
Confirming the bid, CBH Resources said in a statement today that it is yet to decide on the bid by the Belgian metals company.
"Nyrstar NV presented the company with a conditional, confidential and incomplete proposal which could lead to a change of control transaction," CBH said in the statement.
CBH Resources has appointed Clayton Utz and RBC Capital Markets to advise it on the proposal, which is contemplated via a scheme of arrangement and includes requests for exclusivity and due diligence.
''In anticipation of the commencement of substantive discussions, RBC has completed over the Christmas and New Year period the detailed financial work required to assess the merits of the proposal and is providing recommendations to the CBH Board,'' the company said.
A takeover would move Nyrstar, a major producer of zinc and lead as well as other products (including silver, gold, and copper), a step closer in securing its own supplies of zinc ore.