SouthGobi tender offer

Chalco seeks controlling stake in Canada’s SouthGobi

The state-owned aluminium producer offers $926 million for up to 60% of the Mongolia-focused coal miner through a tender offer as it steps up its diversification strategy.
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Stripping at SouthGobi’s Ovoot Tolgoi coal mine in Mongolia</div>
<div style="text-align: left;"> Stripping at SouthGobi’s Ovoot Tolgoi coal mine in Mongolia</div>

Aluminum Corporation of China Chalco announced yesterday that it plans to acquire between 56% and 60% of SouthGobi Resources, a Canadian company with coal mining operations in Mongolia’s South Gobi region and listings in Toronto and Hong Kong. The two companies have also signed a cooperation agreement, which will take effect once the acquisition is completed.

A tender offer will be made to all SouthGobi shareholders, but SouthGobi’s majority owner, Canadian mineral exploration and development company Ivanhoe Mines, has also agreed to tender its entire 57.6% stake as part of the offer to help Chalco reach its acquisition target. Depending on the level of take-up by other...

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