Herbert Smith Freehills has advised Zhaojin Capital (Hong Kong) Limited, a subsidiary of Zhaojin Mining Industry Limited (Zhaojin), on its successful all-cash takeover bid for ASX-listed gold miner Tietto Minerals Limited (Tietto).
Tietto’s mining operations are located in Cote d’Ivoire in Africa.
The offer values Tietto at A$733 million. It was initially rejected by Tietto’s board, but the board later recommended acceptance or sale on-market (while continuing to maintain that the offer undervalued the company) following a price increase. At the close of the offer on 14 May 2024, Zhaojin’s voting power in Tietto was 90.72%.
Zhaojin is an integrated gold corporation listed on the Stock Exchange of Hong Kong (HKEX) with exploration, mining, ore processing and smelting operations. It has a long and successful record of investing in the gold mining industry.
The Herbert Smith Freehills team was led by partners Philippa Stone in Sydney and Hilary Lau in Hong Kong, with Yida Xu of counsel, senior associates Simon Walker and Charles Wong, solicitor Selena Tang, associates Christie Wu and Cara Chan, and trainee solicitors Csilla Cao, Michelle Wu and Emyth Cun. They were supported by Hong Kong corporate partner Jeremy Shen, senior associate Ian Tam, and associate Samuel Au advising on HKEX listing rules compliance aspects. Partners Rebecca Major and Bertrand Montembault, and avocat François Adao, also provided advice on Cote d’Ivoire aspects.
Philippa Stone said, “We are delighted to be advising Zhaojin on its successful bid for Tietto. The transaction is significant for the gold mining industry in Australia and we look forward to continuing to support the Zhaojin team into the future.”
Hilary Lau said, “This transaction illustrates the continuing interest of Chinese miners in offshore acquisitions, and we are delighted to be supporting Zhaojin, using the significant experience of our international practice with mining operations and transactions in West Africa.”
This transaction is another example of Herbert Smith Freehills’ market-leading work in M&A. Other recent examples include advising:
- Seven on its takeover bid for Boral
- Link Group on its acquisition by Mitsubishi UFJ Trust & Banking Corporation
- Prospa on its acquisition by a consortium led by the Salter Brothers Tech Fund
