Why Zijin’s Backing Could Seal Bastion’s Xanadu Takeover
Xanadu Ltd’s major shareholder Zijin Mining has accepted Bastion Pte. Mining Ltd’s takeover offer, pushing Bastion’s stake close to 30% and prompting the Takeover Committee to recommend shareholders accept the bid.
- Zijin Mining accepts Bastion’s off-market takeover offer
- Bastion’s relevant interest in Xanadu rises to 29.67%
- Takeover Committee doubts a superior third-party offer will emerge
- Committee reiterates recommendation to accept Bastion’s offer
- Offer remains subject to conditions and closes July 1, 2025
Zijin’s Acceptance Shifts Takeover Dynamics
Xanadu Ltd, the ASX and TSX-listed copper-gold explorer operating in Mongolia, has announced a significant development in its ongoing takeover saga. Zijin Mining, the company’s largest shareholder and joint venture partner, has formally accepted the off-market takeover offer from Bastion Pte. Mining Ltd. This acceptance increases Bastion’s relevant interest in Xanadu shares to 29.67%, a substantial step toward majority control.
Committee Signals Limited Prospect of Superior Offers
The Takeover Committee overseeing the bid has responded swiftly to Zijin’s decision, expressing skepticism that any alternative third-party offer superior to Bastion’s will materialize. Given Zijin’s influential position and their endorsement of Bastion’s proposal, the committee has reiterated its recommendation that all shareholders accept the offer. This stance underscores the committee’s view that Bastion’s bid is both fair and reasonable, subject to the ongoing independent expert’s assessment.
Offer Terms and Timeline
The takeover offer values Xanadu shares at A$0.08 each and remains subject to customary conditions. Bastion has committed to acquiring a controlling interest of at least 50.1% of Xanadu’s shares, which would consolidate its position as the dominant shareholder. The offer is scheduled to close at 7 – 00pm Sydney time on July 1, 2025, leaving shareholders with a limited window to decide on their acceptance.
Strategic Implications for Xanadu
Xanadu’s portfolio, highlighted by its flagship Kharmagtai copper-gold project in Mongolia, has attracted significant attention due to its scale and potential. The takeover by Bastion, backed by Zijin’s support, could accelerate development plans and provide the company with greater financial and operational backing. However, the outcome also raises questions about the future strategic direction and governance of the company under new majority ownership.
Looking Ahead
As the offer period approaches its conclusion, all eyes will be on final acceptance levels and whether any rival bids emerge. The Takeover Committee’s current position suggests confidence in Bastion’s bid, but the mining sector’s dynamic nature means surprises cannot be entirely ruled out. Investors will be watching closely to see how this pivotal chapter in Xanadu’s corporate story unfolds.
Bottom Line?
With Zijin’s backing, Bastion’s takeover bid gains momentum, setting the stage for a decisive outcome by early July.
Questions in the middle?
- Will any competing bidders emerge before the offer closes?
- How will Bastion’s control influence Xanadu’s exploration and development strategy?
- What are the implications for minority shareholders if the offer succeeds?
