Nyrstar takes over CBH Resources, or not?

In this week’s blog I will write something about the Belgian company Nyrstar. Nyrstar is a leading global multi-metals business, producing significant quantities of zinc and lead as well as other products.

At the time, Nyrstar is trying to take over the Australian company CBH Resources. Their first offer was not accepted and now they made a revised proposal with adding 50 million to the initial bid. However, CBH Resources’ biggest shareholder , Toho Zinc, is also lurking to take over the company.

Last week Roland Junck, the top executive, declared that is was not a necessity to take over CBH Resources. This happened due to the rejection of CBH Resources on their initial offer of 140 million euro.

The bid on the shares will increase by 44 percent. In reality this is an augmentation of 0.060 euro per share. Nyrstar also offered 750 Australian dollar per short-term convertible bond. This brings the total of the offer to 290 million Australian dollar or 190 million euro.

This will be one of the biggest investments Nyrstar ever made. They have done similar, smaller investments concerning mines in Peru, Greenland and the United States.

In my opinion CBH Resources is obviously more important than Nyrstar wants to admit. Even for a company of their proportion, 50 million is still loads of money!
I do find it normal that Nyrstar wants to get their hands on this mine site, but why do they deny it? Nyrstar is active in a sector where they need these resources for the development of a changing world.
CBH Resources produces zinc, lead and solver from the Endeavour Mine and that is exactly what Nyrstar needs. If they want to expand their company and serve more costumers they need the resources.

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