Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, May 18, 2018

Article Excerpt

NEVSUN RESOURCES LTD., $4.42, symbol NSU on Toronto, is the majority owner of two copper/gold projects in Serbia as well as the Bisha copper/zinc mine in Eritrea. On May 7, 2018, Lundin Mining Corp., symbol LUN on Toronto, and Euro Sun Mining Inc., symbol ESM on Toronto, announced that their joint effort to buy Nevsun for $1.5 billion in cash and shares has failed. Under the deal, Nevsun shareholders would have received a total consideration of $5.00 per share: $2.00 per share in cash from Lundin; $2.00 per share in Lundin stock; and $1.00 per share in Euro Sun stock. However, Nevsun rejected the offer from the two Canadian miners, suggesting their bid does not reflect the true value of Nevsun’s three properties. Furthermore, it believes that Euro Sun’s stock does not represent a good investment. If the takeover were to proceed Lundin would get Nevsun’s Serbian assets. Nevsun’s 60%-owned stake in the Bisha open-pit mine of Eritrea would go to Euro Sun, which…