Nevsun Resources today (May 8) announced that its board of directors has unanimously rejected a non-binding unsolicited proposal led by Euro Sun Mining and also including Lundin Mining.
Nevsun Resources (TSX:NSU) today (May 8) announced that its board of directors has unanimously rejected a non-binding unsolicited proposal led by Euro Sun Mining (TSX:ESM) and also including Lundin Mining (TSX:LUN).
According to the press release, Nevsun shareholders do not need to take any actions in respect of the proposal. The non-binding unsolicited proposal is not an offer capable of being accepted by the company’s shareholders nor does it disclose whether such an offer is intended to be made. It is merely a non-binding proposal by Euro Sun. If and when a formal proposal is actually made by Euro Sun, Nevsun shareholders will have 105 days to respond.
As quoted in the press release:
The board’s determination to reject this proposal was made after careful consideration and receipt of the recommendation of a special committee of its independent directors, and after consultation with financial and legal advisors. The rejection follows an extensive engagement with Euro Sun’s bidding partner Lundin over a period of months with regard to a possible transaction.
“The Nevsun Board of Directors is unanimous in its belief that the non-binding unsolicited proposal fails to reflect the strategic value of our asset base,” said Ian Pearce, Chair of Nevsun’s board of directors. “The non-binding unsolicited proposal also presents a problematic structure that could further undermine value to our shareholders.”