Dec 12 (Reuters) - SolGold said on Friday it was "minded to recommend" an improved offer from its top shareholder, Jiangxi Copper that values the gold and copper miner at about 842 million pounds ($1.13 billion), amid a global race for copper assets.
Jiangxi Copper's increased offer of 28 pence per share marks the Chinese company's third proposal to acquire SolGold and a 7.7% increase from its previous 26-pence-per-share bid that was rejected last month.
Ecuador-focused SolGold said its board would
tell shareholders to accept if Jiangxi Copper (JCC) makes a firm offer on those terms.
JCC's pursuit of SolGold is part of a global scramble for copper assets, with miners investing billions into acquisitions as copper demand is expected to rise on the back of investments in artificial intelligence and electric vehicles.
Miners are racing to secure copper supplies, with Anglo American and Canada's Teck Resources still awaiting regulatory approval for their proposed $53 billion merger to create the world's fifth-largest copper company.
SHARES FALL AS INVESTORS WEIGH DEAL
Despite the sweetened proposal, SolGold's shares fell more than 10% to 25.1 pence on Friday, trading below the bid price amid broader investor scepticism over big-ticket mining takeovers.
JCC's bid requires Chinese regulatory approval for outbound investment, a process the state-backed miner has already begun, though such approvals have become more complex as Beijing scrutinises overseas acquisitions.
The acquisition would give JCC control of SolGold's flagship Cascabel project in Imbabura Province, home to one of the world's largest undeveloped copper-gold deposits in South America.
JCC, whose footprint extends beyond China and Hong Kong to regions such as Peru, Kazakhstan and Zambia, holds a 12.2% stake in SolGold. It has won support from other top shareholders BHP, Newmont, and Maxit Capital, collectively representing 40.7% of shares.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Jane Merriman)
