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China Daily Website

Cathay Fortune offers $848m for copper miner

Updated: 2012-10-24 20:19

Chinese private equity company Cathay Fortune Corp has made an 830 million Australian dollar (US$847.8 million) non-binding, indicative offer to acquire Australia's Discovery Metals Ltd, the Australia-listed copper miner.

The board of Discovery Metals, rebuffed a similar offer made by Shanghai-based CFC earlier this month.

The latest offer released on Tuesday showed that a 75/25 percent venture between CFC and the China-Africa Development Fund proposes buying the copper miner for 1.7 Australian dollars/share in cash.

The offer is a 3 percent premium to Discovery's latest closing price, and 17 percent above its recent initial public offering price.

CFC already owns 35.5 percent of Hong Kong-listed China Molybdenum Co Ltd, the largest molybdenum producer in China and the fourth-largest in the world.