Shares in Montreal-based Anvil Mining soared Friday after a $1.3-billion friendly takeover offer from Chinese mining giant Minmetals Resources.
The copper producer’s stock closed at $7.66, up $1.89, or 33 per cent, on the Toronto Stock Exchange. More than 23 million shares traded hands, 50 times the normal volume.
It prices had reached as high as $7.75
The Minmetals bid of $8 is a 38 per cent premium over Thursday’s close.
Anvil’s operations are in the Democratic Republic of Congo.
If there’s a better offer, Minmetals will have the right to match it could receive a break fee of $53 million if the acquisition isn't completed in some circumstances.
It has also agreed to pay a $20-million fee to Anvil in certain circumstances, such as a rejection of the deal by Minmetals shareholders.
Minmetals made a $6.04 billion offer Equinox Minerals, a firm focused on copper mining in Zambia, but was beaten out by Toronto-based Barrick Gold Corp. in April.
The deal is the latest in a trend that has seen Chinese companies acquire stakes in oilsands, mining and other resources companies in Canada and around the world.
Earlier Friday, North Atlantic Potash Inc. sold eight of its exploration areas in Saskatchewan to China’s Yancoal Canada Resources for $110 million.
Over the last two years, Chinese companies have bought a 20 per cent stake in Vancouver-based Teck Resources, Canada's largest publicly traded miner. Chinese companies have also helped finance iron ore exploration in northern Quebec and other metals projects in the rest of Canada.
China has been stockpiling minerals, metals, cement, coal and other resources for years to help feed its rapidly growing needs as the world's second-biggest economy expands its network of roads and transit, and builds office buildings and factories.
With files from The Canadian Press Accessibility Links
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