Chifeng Jilong Gold (6693 HK): Zijin Mining Seeks Controlling Stake
Zijin Mining Group (2899 HK) is seeking to become the largest shareholder in dual-listed (and currently privately-owned) Chifeng Jilong Gold Mining (6693 HK).
Zijin Mining’s subsidiary, Zijin Gold (not the listco), will buy 242mnn A shares of Chifeng Gold from its single largest shareholder, Li Jinyang, and concert party Zhejiang Hanfeng, at RMB41.36/share.
Concurrently, Zijin Gold has proposed subscribing to 311mn new H shares of Chifeng Gold at HK$30.19/share. If all goes to plan, Zijin Mining will hold 25.85% in Chifeng Gold.
The Trade:
Depending on your gold viewpoint, the consolidation of resources and output is, to me, positive amid ongoing geopolitical tensions and safe-haven demand.
This insight is labelled bullish as I’m not bearish Chifeng here.
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