Market Chatter: Ivanhoe Mines and Chalco Agree to Extend Chinese Takeover Bid of SouthGobi: Report
Aluminum Corp. of China (Chalco) has agreed to a 30-day extension for its bid for Ivanhoe Mines' controlling stake in SouthGobi Resources (SGQ.TO) that has come under scrutiny by the Mongolian government, Canadian Press reports.
The offer of $8.48 per share is subject to Canadian and Chinese regulatory approvals as well as Chalco shareholder approval.
Instead of July 5, Chalco has now agreed to make a take-over bid on or before August 3, and thereafter the bid must be taken up after 36 days at the earliest, the companies said Tuesday in a news release.
Shares in SouthGobi fell sharply last week after the company said it would stop production at its Mongolian coal mine due to weak market conditions and regulatory issues.
SGQ shares were up 34 cents to $4.19.
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