(Updates with further details in paragraphs 3-6)
Nov 3 (Reuters) - Tietto Minerals (TIE) said on Friday a takeover offer by a unit of China's Zhaojin Mining Industry 1818.HK "materially undervalues" the Australian gold company.
Tietto said it was recommending that shareholders to not accept the A$629 million ($404.57 million) offer by Zhaojin Capital to buy all the shares of the Australian miner that it doesn't already own.
Tietto said the offer was been "opportunistically timed" by Zhaojin as it came after an improvement in its flagship Abujar gold mine in Ivory Coast.
October was a record month for the mine, with about 12,057 ounces of gold recovered, according to Tietto.
Under the terms of the offer, Zhaojin Capital, which already owns about 7% of Tietto's shares, would buy the remaining 93% stake for A$0.58 per share. That represented a 36.5% premium to the stock's Oct 29 close.
The offer is subject to a number of approvals, including from regulatory authorities in China and Ivory Coast.
($1 = 1.5547 Australian dollars)
Add to My Watchlist
What is My Watchlist?