Jincheng Tongda & Neal (JT&N) has advised a Chinese consortium of companies on its $480 million acquisition of stakes in South Africa’s Palabora Mining Company (PMC), a majority of whose stocks are owned by international mining conglomerates Rio Tinto and Anglo American.
The consortium, comprising Chinese companies Hubei Iron & Steel Group Co Ltd, General Nice Development Ltd, Tewoo Group Co, Ltd and the Industrial Development Corporation of South Africa Ltd (IDC), plans to purchase 74.5 percent direct and indirect stakes of PMC, which owns a copper and magnetite mine in Phalaborwa in addition to a vermiculite mine.
The total deal value could reach as high as $600 million if a general offer is extended to the 25.5 percent minority shareholders of PMC immediately after the closing of the announced transaction.
The China-Africa Development Fund, an investment fund under the China Development Bank which focuses on investing in Africa, is also a potential minor investor in the consortium.
The JT&N team which represented the Chinese consortium was led by Beijing partners Annie Wu and Xiaodong Zheng.
“JT&N is honoured to be playing a key role on this very important transaction. This role has required us to manage every aspect of the deal while dealing with multiple government entities and global conglomerates, including South Africa's sovereign fund and Rio Tinto,” said Wu.
Werksmans Attorneys acted as the South African counsel to the consortium, while Edward Nathan Sonnenbergs represented IDC. The sellers were advised by Norton Rose.
The Investment Banking divisions of Barclays Bank PLC and Absa Group Ltd in Hong Kong and South Africa were the consortium’s financial advisers, while Deutsche Bank Johannesburg acted as the exclusive financial adviser to IDC.
Liu Zhen is China senior journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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