Morgan Stanley: If Zijin Mining Group (02899) acquires equity in Zangge Mining (000408.SZ), the estimated transaction amount is expected to be between 2 billion and 2.2 billion US dollars.

Morgan Stanley has released a research report stating that Zangge Mining (000408.SZ) is still in negotiations with Zijin Mining Group (02899) regarding an equity transaction. Zangge Mining's major shareholder, Tibet Zangge Chuangye Investment, and the second largest shareholder, Ningbo Meishan Bonded Port New Sha Hongyun Investment Management, collectively hold about 40% of Zangge Mining. Based on Zangge Mining's current market value of 46.6 billion RMB, with a premium of 30 to 40%, if Zijin finalizes the acquisition transaction, the estimated transaction value would be 2 to 2.2 billion USD (approximately 15.58 to 17.13 billion HKD). Zangge Mining announced that its controlling shareholder, Tibet Zangge Chuangye Investment, and its concerted action person, Lin Jifang, are planning significant matters that may lead to a change in the company's controlling interest. In order to ensure fair disclosure of information, protect the interests of investors, and avoid causing abnormal fluctuations in the company's stock price, the trading of the company's stock has been suspended since yesterday morning (14th), and is expected to resume within 3 trading days. Zijin announced last Friday (10th) that it is in discussions with Zangge Mining's major shareholder, Tibet Zangge Chuangye Investment, and its concerted action person, as well as the second largest shareholder, Ningbo Meishan Bonded Port New Sha Hongyun Investment, regarding a potential acquisition of Zangge Mining's shares. The potential acquisition may involve a change in Zangge Mining's controlling interest. The bank pointed out that Zangge Mining's key projects are potassium and lithium mines located in Tibet, China and Laos. Zijin expressed interest in exploring opportunities in minerals other than gold and copper during the management summit held by the bank last week.