Herbert Smith Freehills advises Zhaojin on all-cash offer for Tietto

Herbert Smith Freehills has advised Zhaojin Mining Industry (HKG:1818) subsidiary Zhaojin Capital (Hong Kong) on its all-cash takeover bid for Africa-focused gold miner Tietto Minerals (ASX:TIE).

The offer values Tietto, which has mining operations located in Cote d’Ivoire, at $733 million. 

It was initially rejected by Tietto’s board, however the board later recommended acceptance or sale on-market while continuing to maintain that the offer undervalued the company following a price increase. 

At the close of the offer on 14 May 2024, Zhaojin’s voting power in Tietto was 90.72%.

Zhaojin is an integrated gold corporation listed on the Stock Exchange of Hong Kong (HKEX) with exploration, mining, ore processing and smelting operations. It has a record of investing in the gold mining industry.

Herbert Smith Freehills Partner Philippa Stone says the transaction is significant for the gold mining industry in Australia and the firm looks forward to continuing to support the Zhaojin team into the future.

Partner Hilary Lau adds that the transaction illustrates the continuing interest of Chinese miners in offshore acquisitions.

“We are delighted to be supporting Zhaojin, using the significant experience of our international practice with mining operations and transactions in West Africa.”

The Herbert Smith Freehills team was led by partners Philippa Stone in Sydney and Hilary Lau in Hong Kong, with Yida Xu of counsel, senior associates Simon Walker and Charles Wong, solicitor Selena Tang, associates Christie Wu and Cara Chan, and trainee solicitors Csilla Cao, Michelle Wu and Emyth Cun. 

They were supported by Hong Kong corporate partner Jeremy Shen, senior associate Ian Tam, and associate Samuel Au advising on Hong Kong listing rules compliance aspects. 

Partners Rebecca Major and Bertrand Montembault, and avocat François Adao, also provided advice on Cote d’Ivoire aspects.

Images: Tietto
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.