July 17, 2018 / 11:59 AM / 5 months ago

Canadian miner Nevsun says Lundin's bid undervalues the company

July 17 (Reuters) - Nevsun Resources Ltd said on Tuesday rival Lundin Mining Corp’s most recent offer to buy the base metals miner ignores the “fundamental value” of the company and its assets.

Nevsun’s Chief Executive Officer Peter Kukielski said in a statement that Lundin’s notional takeover offer represents only a 13 percent premium to Nevsun’s closing trading price on Monday.

Nevsun’s shares had closed at C$4.21 on Monday.

Nevsun’s response comes a day after Lundin made its offer, its second in three months to buy Nevsun. The company said that it had not yet received a formal offer.

Lundin’s C$1.4 billion bid is about C$100 million lower than its previous offer in May.

Cash-rich Lundin has been eyeing Nevsun’s large high-grade Timok copper project in Serbia and its Bisha copper and zinc mine in Eritrea, in a partnership with Euro Sun Mining Inc . (Reporting by John Benny and Karan Nagarkatti in Bengaluru)

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