Nevsun board rejects Lundin Mining hostile bid, to proceed with strategic review
Nevsun Resources announced that its board of directors has rejected the hostile offer by Lundin Mining to acquire all of the outstanding shares of Nevsun for C$4.75 per share in cash. "The Nevsun Board of Directors is unanimous in its belief that the Lundin offer substantially and fundamentally undervalues Nevsun and fails to reflect the strategic value of our asset base," said Ian Pearce, Chairman of Nevsun's board of directors. Dave Smith, Chair of the Special Committee: "We have actively and extensively engaged with Lundin over the last several months, including offering access to confidential information and detailed management presentations. Our continual message was that we require full and fair value that reflects the strategic value of all our assets, and the interests of our shareholders. Our Board's focus is squarely on shareholders' interests, and with our advisors we have been actively considering available opportunities to maximize value for shareholders through a strategic investment in Nevsun. To ensure we have left no stone unturned, the Board has commenced a strategic review process to consider all alternatives available to Nevsun to maximize value - above and beyond the proposals already generated by Nevsun's recent strategic investment process - including a potential acquisition of Nevsun as a whole. Discussions are ongoing with several parties that have expressed interest in value-enhancing alternatives to Lundin's hostile bid, and we fully expect that superior offers or other alternatives will emerge from this process."