Enterprise Television- CITIC Metal Finalises $556 Million Equity Deal with Ivanhoe
CITIC Metal Africa Investments, a subsidiary of CITIC Metal -China, has announced the completion of a major strategic equity investment of $556 million in Ivanhoe Mines.
The deal was initiated by CITIC Metal in June this year, and its CEO, Yufeng Sun described the investment in Ivanhoe as a reflection of CITIC’s strong belief that the long-term prospects for the mining industry are positive, especially given the projected robust future demand for key metals, such as copper for renewable energy infrastructure and electric vehicles.
Ivanhoe issued about 196-million common shares to CITIC Metal Africa through a private placement, at a price of C$3.68 a piece, making CITIC Metal Africa the largest single shareholder in the company at 19.5 per cent.
The second-largest shareholding at 17 per cent is held by Ivanhoe Executive Co- chairperson Robert Friedland.
CITIC Metal Africa and Friedland have signed reciprocal standstill agreements that prevent either of them from increasing their individual ownerships in Ivanhoe to more than 19.9 per cent until January 2022.
Ivanhoe and CITIC have had a longstanding relationship since 2003 and have come to understand the other’s values, strategic priorities and operational and financial capabilities, the parties state.
CITIC’s CEO Yufeng Sun commented that the investment in Ivanhoe reflects CITIC’s strong belief that the long-term prospects for the mining industry are positive, especially given the projected robust future demand for key metals, such as copper for renewable energy infrastructure and electric vehicles.
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