Cathay Fortune buys Australia-listed mine in Africa

Cathay Fortune wades into Africa to scoop up yet another resources company as prices are depressed and opportunities arise.
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Discovery Metals operates copper mines in Botswana
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<div style="text-align: left;"> Discovery Metals operates copper mines in Botswana </div>

In the latest move by Chinese companies to get their hands on natural resources, a Chinese private equity firm, Cathay Fortune, is offering A$830 million $848 million for control of Discovery Metals, an Australian copper producer with mines in Botswana.

The deal calls for Cathay Fortune to take 75% and China-Africa Development Fund to control 25% as they acquire all of the ordinary shares of Discovery Metals for A$1.70 a share in cash, or approximately A$830 million in equity value and A$947 million in enterprise value. Cathay Fortune currently owns 13.7% of the ordinary shares of Discovery Metals. The offer price represents a 51% premium to the 20-day VWAP of...

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