Shenzhen Zhongjin Lingnan Nonfemet, China's third-largest zinc producer, has taken a controlling interest in the cash-poor Australian lead and zinc miner, Perilya following a share placement.
The Chinese company has emerged with a 50.1 per cent stake in Perilya through a placement of 197,672 million shares at 23 cents each for a cash consideration of $45.5 million.
The transaction was approved by Australia's Foreign Investment Review Board on Wednesday and shareholders approved the deal on Thursday.
Zhongjin president Zhang Shuijian said on Thursday that his company had no immediate plans for more acquisitions in Australia, "but we obviously are open to future opportunities and we look forward to working with Perilya on future opportunities," he said.
between Perilya and debt-laden lead and zinc miner CBH Resources Ltd, he said.
Last month, debt-laden zinc miner CBH Resources Ltd abandoned a $31.4 million hostile takeover bid for Perilya, citing concerns with the Perilya's financial position. Mr Zhang said that Zhongjin had no plans to revisit this merger proposal.
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