LG advises on first ever takeover offer by Chinese company for UK listed company
23 March 2007
LG is advising Xiamen Zijin Tongguan Investment Development Co Ltd ("Zijin Consortium"), a consortium of three leading Chinese companies on its recommended cash takeover offer of Monterrico Metals plc ("Monterrico") for £94 million.
Zijin Consortium comprises Zijin Mining Group Co Ltd, listed on the Hong Kong Stock Exchange, and one of the largest gold producers in China which holds 45 per cent., Tongliing Nonferrous Metals (Group) Inc, a PRC enterprise with significant copper and other mining interests, which holds 35 per cent. and Xiamen C&D Inc, listed on the Shanghai Stock Exchange, with 20 per cent.
Monterrico is a London based resource development company listed on AIM, which is involved in the Rio Blanco copper molybdenum project in Northern Peru.
The LG team advising Zijin Consortium included solicitors Geoffrey Gouriet, Oliver Riley, Farhod Moghadam and David Reith and was led by corporate partner and head of China practice, Victoria Younghusband, who is also admitted as a solicitor in Hong Kong.
Victoria said: "It has been an exciting challenge for us, working closely with Charltons Law in Hong Kong, to advise the Zijin Consortium on the first ever takeover offer by a Chinese company for a UK listed company. We are delighted to continue the relationship with Zijin and Charltons on our second transaction for Zijin, following Zijin's £8.2 million subscription last November for 20% of the share capital of AIM listed mining company, Ridge Mining plc together with warrants to subscribe for a further 9.9%."
"We hope this groundbreaking transaction paves the way for a new wave of deals for Chinese companies with ambitions to gain exposure to the capital and liquidity available through London's markets", added Victoria.
Monterrico is advised by Linklaters.
Notes to editors
LG is a London-based business law firm with over 270 lawyers, advising entrepreneurial and growth market clients seeking to raise capital for their business ventures.
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Victoria Younghusband
+44(0)20 7759 6612