Hunan Nonferrous in takeover offer for Abra Mining
HONG KONG, May 14 (Reuters) - Hunan Nonferrous Metals Corp Ltd (2626.HK), China's top zinc producer, plans to pay up to $77 million for control of Abra Mining Ltd (AII.AX), an Australian lead, zinc, gold and silver mining firm in which it already has a 17.8 percent stake.
Hunan Nonferrous Metals said late on Tuesday that it would offer A$0.83 in cash for 7 of every 10 Abra shares it did not already own.
The offer price represents a 44 percent premium to the 10-day volume weighted average share price up to May 9, the last day of trading before the announcement.
Abra shares closed at A$0.75 per share on Tuesday, taking the company's market value to A$102.92 million ($97.35 million).
If the offer was accepted, Hunan would pay between A$67 million and A$81 million, depending on the options exercised, Hunan's adviser David Bo told Reuters.
After completion of the offer, Hunan would hold up to about 75 percent of the Australian company, he added. For details please read here ($1=A$1.057) (Reporting by Alison Leung; Editing by Anne Marie Roantree)
