Nyrstar raises bid for Australian zinc miner CBH Resources
12 Mar 2010
Nyrstar NV, the world's largest zinc metal producer and the largest primary lead smelting and refining company, said today that its has sweetened its takeover offer for Australian zinc miner CBH Resources Ltd to A$213.45 million.
Balen, Belgium-based Nyrstar has now offered 19.5 cents per share in cash or shares, valuing CBH at A$213.45 million.
On 18 December 2009, Nyrstar had made a confidential takeover offer for CBH, but went public with the deal only on 11 January 2010, revealing that it had offered A13.5 cents per share, valuing the company at A$147.8 million in order to move a step closer in securing its own supplies of zinc ore. (See: Australian zinc miner CBH weighs A$148 million Nyrstar offer)
But the Sydney-based CBH had rejected Nyrstar's January offer and instead opted to form a $67.5 million joint-venture with its major shareholder Toho Zinc of Japan. The JV, which included the 50-per cent sale of CBH's Rasp Project at Broken Hill to Toho, required the approval of CBH shareholders.
CBH went ahead with the deal with Toho as it did not want to continue further dialogue with Nyrstar.
CBH today confirmed that it has received a revised proposal from Nyrstar and said that it would provide a preliminary response to Nyrstar's revised proposal early next week.