Chinese private equity firm Cathay Fortune Corp has made a hostile A$824 million (US$850.49 million) takeover bid for Australia\'s Discovery Metals Ltd after the copper explorer\'s board rebuffed a similar offer earlier this month.
CF Investments, a firm owned 75 per cent by Cathay Fortune and 25 per cent by China-African Development Fund will offer A$1.70 in cash compared with Discovery\'s last closing price of A$1.65.
\"The decision of the Discovery board to refuse access to due diligence and further engagement without any reasonable basis has prompted CFC\'s decision to bypass the Discovery board and present the offer directly to the Discovery shareholders,\"founder of CFC Yong Yu said in a statement.
The takeover offer for Discovery is the latest in a series of small to mid-sized metals and mining deals to hit Asia in the wake of sliding commodity prices. Discovery rejected the offer, calling it undervalued.
CF Investments, a firm owned 75 per cent by Cathay Fortune and 25 per cent by China-African Development Fund will offer A$1.70 in cash compared with Discovery\'s last closing price of A$1.65.
\"The decision of the Discovery board to refuse access to due diligence and further engagement without any reasonable basis has prompted CFC\'s decision to bypass the Discovery board and present the offer directly to the Discovery shareholders,\"founder of CFC Yong Yu said in a statement.
The takeover offer for Discovery is the latest in a series of small to mid-sized metals and mining deals to hit Asia in the wake of sliding commodity prices. Discovery rejected the offer, calling it undervalued.