Metorex Gets Unsolicited Expression of Interest

[LesCrozes]

Vale Target Metorex Gets Unsolicited Expression of Interest
June 17, 2011, 2:12
By Alastair Reed
(Updates with company comment in second paragraph.)

June 17 (Bloomberg) -- Metorex Ltd., a $1.1 billion target for Brazil’s Vale SA, said it received an unsolicited approach from another party.

Certain conditions must be met before the interested party decides to bid, Metorex said today in a statement. “There is currently no certainty that Metorex will receive a firm intention to make an offer from the alternate party,” it said.

Vale, seeking to boost copper output almost fivefold to 1 million metric tons by 2015, bid 7.35 rand ($1.07) a share for Johannesburg-based Metorex on April 8 in a deal that would give the Brazilian company the Ruashi open-pit mine in the Democratic Republic of Congo, as well as the Chibuluma underground copper project and the Sable zinc operation in Zambia.

Vale, based in Rio de Janeiro, is pursuing copper acquisitions as it seeks to diversify beyond iron ore.

[LesCrozes]

Metorex shares climb as another party expresses interest
By: Loni Prinsloo
17th June 2011

JOHANNESBURG (miningweekly.com) − Shares in JSE-listed Metorex climbed more than 4% on Friday on the news that another party is interested in bidding for the company.

The suitor would have to trump the R7.5-billion, or R7.35 a share, offer made by the Brazilian mining giant Vale in April.

Metorex shareholders were set to vote on the Vale offer, which had already been approved by Vale shareholders, on July 22. However, with another party now also showing interest, this meeting might be postponed.

Metorex spokesperson Jacques de Bie explained that the company was still awaiting a firm intention, or offer, to be put on the table by the alternate party. If not, the vote on the Vale deal would go ahead as planned.

The expression of interest provided for certain preconditions to be met before the party would express a firm intention to make an offer, including a due diligence. The board would also provide the interested party with access to the same information as was provided to Vale.

Cadiz analyst Peter Major had previously indicated to Mining Weekly Online that the Chinese might make a counter bid to that of Vale.

Metorex said in April that it would consider other serious offers.

The miner has two operating mines, including the Chibuluma mine, in Zambia, in which it holds an 85% interest, and Ruashi, in the Democratic Republic of Congo (DRC), in which it holds a 75% interest. It has three projects in the DRC – one in the development phase and two in the exploration phase.

Metorex traded 4.38% higher at R7.62 a share on Friday.

[LesCrozes]

Metorex receives another buy out offer
Metorex receives second buy offer from "unknown" party to challenge Vale’s previous bid.
ROY DOWNING
Published: 2011/06/17 09:28:42 AM

Metorex , the JSE-listed miner with copper and cobalt assets in the Democratic Republic of Congo and Zambia, says it has received a unsolicited, non-binding expression of interest to buy the entire issued share capital of Metorex from an alternate party".

In March, Vale, the world’s second-largest resources group, made a R7,5bn offer for the whole of Metorex to grow its African copper business.

However, Metorex says there is no guarantee that the they will receive a "firm intention to make an offer" from the alternative party.

"The expression of interest provides for certain pre-conditions to be met before the alternate party will be prepared to express a firm intention to make an offer, inter alia, a due diligence conducted to the satisfaction of the alternate party," Metorex said in a statement on Friday.

Metorex also said its board will provide the alternate party with access to the same information as was provided to Vale SA.

[cvarvois]

Metorex Ltd. (MTX), the target of a $1.1 billion takeover bid from Brazil’s Vale SA (VALE), received an unsolicited approach from another party.

“There is currently no certainty that Metorex will receive a firm intention to make an offer from the alternate party,” Johannesburg-based Metorex said today in a statement.

Vale, seeking to boost copper output almost fivefold to 1 million metric tons by 2015, bid 7.35 rand ($1.08) a share for Metorex on April 8 in a transaction giving the Rio de Janeiro- based company the Democratic Republic of Congo’s Ruashi open-pit mine and the Chibuluma copper development in Zambia.

Metorex rose 4.9 percent to 7.66 rand, the highest closing level since Oct. 17, 2008, as of 5 p.m. in Johannesburg trading.

“You can see from the price that the people in the know, and there are always people in the know, are obviously impressed by the quality of the bidder,” Vestact Securities Ltd. Managing Director Paul Theron said by phone from Johannesburg today. “Vale are not idiots. You can assume that they recognize a good value case,” he said, adding the company’s offer would send a signal to others highlighting the value of the investment.
Legal Battle

The bidder may be Chinese, Johannesburg-based news website Miningmx reported today.

Other companies operating in Congo include First Quantum Minerals Ltd. (FM) and Eurasian Natural Resources Corp.

First Quantum, the Canadian company in a legal battle with Congo over its Kolwezi mining license and assets, isn’t involved in the offer for Metorex, company President Clive Newall said in an e-mailed response to queries. “Definitely not us.”

Charlotte Kirkham, a spokeswoman at ENRC, wouldn’t comment. The London-based company, whose copper units include Central African Mining & Exploration Co. in Congo and Chambishi Metals Plc in Zambia, bought rights to the Kolwezi project in August. The deal prompted First Quantum to seek more than $1 billion in compensation.

A Vale official in Rio de Janeiro, who declined to be identified citing corporate policy, said the company wouldn’t comment.

http://www.bloomberg.com/news/2011-06-1 ... erest.html