Chinese PE Firm Cathay Drops $850M On Aussie Miner

Law360, New York (October 4, 2012, 7:43 PM EDT) -- Australian copper miner Discovery Metals Ltd. said Thursday it had received an AU$829.6 million (US$849.6 million) takeover offer from Shanghai-based Cathay Fortune Corp., a sign that Chinese private equity investors' confidence is growing even as commodities prices slide.

The AU$1.70-per-share cash offer, an unusually large gamble for a Chinese private equity house, comes from a 75-25 joint venture between Cathay and the China-Africa Development Fund, China's main private equity fund focused on African investments, according to a Sept. 21 letter from Cathay Director and CFO Zhang...
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