Linklaters, Freehills and David Ward Phillips & Vineberg have all advised Minmetals Resources’ (MMR)on the launch of its aggressive US$6.5bn acquisitional bid for Equinox Minerals – China's biggest-ever takeover bid for an Australian-listed resources company.

The US$6.5bn all cash -offer by Minmetals - set to complicate a hostile takeover bid by Equinox for Lundin Mining - is conditional upon Equinox abandoning its own deal with Lundin, set to be decided next week.

A shareholder’s meeting scheduled for 11 April 2011 will see Equinox shareholders vote on the Lundin acquisition proposal. Shareholders must reject Lundin and tender their shares into the offer for the Minmetals deal to go ahead. 
 
Under terms of the proposed offer, MMR will acquire all of the outstanding common shares in Equinox not already owned by it for US$7.26 per share – a 23% premium to the closing price of Equinox shares on 1 April 2011, the last day prior to the announcement.

According to Minmentals CEO Andrew Michelmore, the MMR takeover bid represents ‘a superior alternative’ for Equinox shareholders to the Lundin acquisition.  “For Equinox shareholders, the offer is compelling in that it not only provides a substantial premium and certainty of value.”

The acquisition of Equinox marks MMR’s first investment foray into the African copper belt and the Middle East. Investment into both regions is consistent with MMR’s long term strategic growth plans. 

Equinox’s Lumwana mine in Zambia is a substantial copper producing asset with current production of 145,000 tonnes per annum set to grow to 260,000 tonnes within the next five years. The mine is also estimated to produce copper for the next 37 years. In addition, Equinox’s Jabal Sayid project in Saudi Arabia – forecasted to produce an average of 60,000 tonees per annum – is slated to commence production in 2012.

Minmetals Resources, which is 75% owned by China Minmetals Corp, a state-owned company with interests in base metals, iron ore, steel and shipping.

The acquisition, if it goes ahead, will eclipse Yanzhou Coal Mining Co.'s US$3.41 billion acquisition of Felix Resources, which in late 2009, became the largest Chinese takeover of an Australian company to date.

MMR’s joint financial advisers on the proposed offer are Deutsche Bank and Macquarie Capital Advisers.ALB

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