CHALCO announces takeover bid for Ivanhoe's subsidiary SouthGobi Resources

Ivanhoe Mines Chairman David Huberman said today that the company has received notice that Alumproduction of artificial construction sandinum Corporation of China (CHALCO) intends to make a proportional takeover bid for up to 60%, but not less than 56%, of the common shares of Mongolian coal miner SouthGobi Resources.

Ivanhoe currently owns 104,807,155 shares of SouthGobi, representing approximately 57.6% of SouthGobi's issued and outstanding shares. Ivanhoe has entered into a lock-up agreement with CHALCO and has agreed to tender all of its SouthGobi shares, on a pro-rata basis, to CHALCO. Depending upon the uptake of the offer by other SouthGobi shareholders, Ivanhoe could receive up to approximately C$889 million from the sale of all of its shares in SouthGobi. A sale of 60% of its current holding would realise proceeds of approximately C$533 million. "Ivanhoe's board, in conjunction with our financial and legal advisors, has determined that the value offered by this transaction is an excellent opportunity for...