Chalco delays SouthGobi takeover bid by another month
The Aluminum Corp of China (Chalco) and Ivanhoe Mines have agreed to further extend the time for the former to make a proportional takeover bid for SouthGobi Resources.
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It marks the second time the Chinese conglomerate has delayed the bid for an up to 60% stake of the Mongolia-based coal miner.
The previous 30-day extension was announced earlier in July, which gave Chalco until August 3 to make the bid. The deadline has now been extended to September 4.
Thereafter the bid must be taken up after 36 days at the earliest if all conditions are met, according to a statement from the two companies.
“Ivanhoe and Chalco confirmed they will cooperate with the Government of Mongolia to ensure any requirements under the country’s new strategic foreign investment legislation are satisfied.
“In order to do so, additional time is needed to engage with the Mongolian Government and review the terms and conditions of the transaction,” the companies said on Thursday August 2.
Chalco announced the original intended bid in early April and its shareholders approved the $930 million acquisition at the end of June.
The deal sparked public outcry in Mongolia after it was announced in April and accelerated the passage of a new foreign investment law in May.
Any foreign investments worth more than 100 billion tugriks ($75 million) that are for stakes exceeding 49% in companies in certain strategic sectors will now require government and parliamentary approval.
Ivanhoe has also changed its name to Turquoise Hill Resources, it said late on Thursday.