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Nevsun Resources says Lundin offer ignores fundamental value of the company

Last Updated Jul 17, 2018 at 5:20 am PDT

TORONTO – Nevsun Resources Ltd. says a renewed takeover offer by Lundin Mining Corp. ignores the fundamental value of the company.

The company urged shareholders to take no action in response to Lundin’s announcement, noting that no formal offer has yet been made.

Lundin Mining says it plans to make a restructured $1.4-billion cash offer for Nevsun Resources after a previous attempt fell through.

In May, the company partnered with Euro Sun Mining Inc. on a roughly $1.5-billion takeover offer that was a combination of cash and shares in both firms.

Nevsun rejected that offer because it said it overvalued Euro Sun’s shares and because the company’s involvement raised other uncertainties.

The company says the latest offer of $4.75 per share in cash is less than the $5 in cash and shares in an expression of interest by Lundin earlier this month.

Shares in Nevsun, which operates the Bisha Mine in Eritrea and the Timok project in Serbia, closed down nine cents at $4.21 on the Toronto Stock Exchange on Monday.

Companies in this story: (TSX:NSU, TSX:LUN, TSX:ESM)