Chinese firm to buy NevSun

Article Excerpt

NEVSUN RESOURCES LTD. $5.76 (Toronto symbol NSU; Shares outstanding: 302.6 million; Market cap: $1.7 billion; Dividend yield: 0.3%; Takeover Target Rating: Highest; www.nevsun.com) is the majority owner of the Timok copper/gold projects in Serbia as well as the Bisha copper/zinc mine in Eritrea. The company has now accepted a $6.00-a-share all-cash takeover offer from Chinese mining firm Zijin Mining Group Co. Ltd. The new offer tops a $4.75-a-share hostile bid from Sweden’s Lundin Mining. NevSun’s shares are trading just below the Zijin offer, which indicates that investors do not expect Lundin to increase its bid. If shareholders approve, NevSun aims to complete the transaction by the end of 2018 NevSun investors should tender their shares to avoid paying brokerage fees. fees…