Metorex Ltd., the African copper producer subject to a $1.36 billion takeover bid, said it’s recommended the offer from China’s Jinchuan Group Co. and agreed not to seek further approaches.
The board of Metorex will recommend shareholders vote in favor of the Jinchuan offer of 8.90 rand ($1.30) a share, the Johannesburg-based company said today in a statement. Vale SA this week abandoned an earlier agreed bid of 7.35 rand a share.
Metorex will pay a break-fee to Vale of 75.2 million rand ($11 million), it said. Jinchuan agreed to pay a break-fee of as much 182 million rand should its bid fail for a number of reasons, including not winning Chinese government approvals.
The battle for Metorex’s copper and cobalt mines in Zambia and the Democratic Republic of Congo pitted Brazil’s Vale against China’s biggest nickel producer as companies from the largest natural-resource consumers scour Africa for mines.
The purchase of Metorex would give Jinchuan control of the Ruashi open-pit mine in Congo and the Chibuluma copper project in Zambia.
Metorex declined 0.4 percent to 8.42 rand at the 5 p.m. close in Johannesburg.