Jiangxi Copper increases SolGold takeover bid to $1.12bn

Core Viewpoint - Jiangxi Copper has increased its takeover bid for SolGold to approximately £842 million ($1.12 billion), offering 28p per share, with SolGold's board indicating a willingness to recommend the proposal if a formal offer is made [1][2]. Group 1: Takeover Bid Details - The latest offer from Jiangxi Copper is the third non-binding attempt to acquire SolGold, representing a 7.7% increase from the previous offer of 26p per share, which was rejected by SolGold last month [2]. - The rise in gold prices this year, influenced by geopolitical tensions and economic uncertainty, has heightened demand for safe-haven assets and encouraged consolidation in the mining sector [2]. Group 2: Support from Major Shareholders - BHP Billiton has issued a non-binding letter of intent (LoI) supporting the revised offer, covering its 310,965,736 shares, which represent 10.3% of SolGold's voting rights [3]. - Newmont has also provided a LoI in support of the revised offer, covering its 309,309,996 shares, accounting for another 10.3% of SolGold's voting rights [3]. - Maxit Capital and its affiliates have issued a LoI supporting the revised offer, holding 153,366,663 shares, representing 5.1% of SolGold's voting rights [4]. - SolGold's CEO Nicholas Mather has issued a LoI supporting the revised offer for his holdings of 84,249,282 shares, which represent 2.8% of the voting rights [4]. Group 3: Jiangxi Copper's Shareholding - Since December 2022, Jiangxi Copper has been a significant shareholder in SolGold, holding 365,757,587 shares, approximately 12.2% of SolGold's issued share capital [5]. - With the support from BHP, Newmont, Maxit, and Nicholas Mather, Jiangxi Copper is backed by shareholders representing 40.7% of SolGold's issued share capital [5].