What’s new: Zijin Mining Group Ltd. (601899.SH) offered 1.24 billion yuan ($195 million) for a 21.23% stake in cross-border logistics service provider Jiayou International Logistics Co. Ltd. (603871.SH), the company said Monday.
A wholly owned unit of Zijin Mining will acquire 45.05 million shares of Jiayou for 18.9 yuan a share and will subscribe for 20.97 million shares of Jiayou’s non-publicly issued shares for 387 million yuan, the mining giant said.
After completion of the deal, Zijin Mining will become Jiayou’s second-largest shareholder and will have the right to nominate one director to the board.
Jiayou’s business includes domestic and international transport, logistics infrastructure investment and operation and supply chain trade. Jiayou’s business layout has a strong synergistic effect with Zijin’s overseas projects, and the investment will help improve logistics efficiency and reduce transportation costs, Zijin Mining said.
The background: In 2019, Jiayou signed a $2.3 million contract to modernize infrastructure, including 150 kilometers of roads, a port, and two border crossings, in Central Africa’s Congo. The project is expected to spur growth among Chinese mining companies active in the region, including Zijin Mining.
Zijin Mining is the second-largest shareholder of the operator of a major copper mine in southern Congo. The Kamoa-Kakula mine has reserves of more than 43.69 million tons, equivalent to around 37% of China’s copper reserves.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (hello@caixin.com)
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