BHR Partners spends $1.1 billion for 24% stake in Tenke Fungurume (DRC)

By Allan Cunningham | Africa Capital Digest November 24, 2016

BHR Partners, a Chinese private equity firm, has agreed to acquire Lundin Mining’s 24% stake in the Tenke Fungurume mine in the Democratic Republic of Congo for at least $1.136 billion. The deal is expected to close in the first half of 2017.

Lundin Mining held the indirect minority interest in the mine through TF Holdings, a Bermuda holding company that owns an 80% interest in the mine. Lundin’s 30% stake in TF Holdings translates into a 24% interest in the giant copper and cobalt mine. The agreed price for the stake was derived from the implied value of Lundin’s interest in TF Holdings based on the sale of Freeport-McMoRan’s share in TF Holdings to China Molybdenum Co., Ltd announced on May 9, 2016.

“The decision to sell our minority interest in Tenke has been arrived at following a careful and lengthy consideration of all options open to us. It was a difficult decision, respecting the 20 years of Lundin involvement in Tenke, and the special nature of this world class asset,” said Lundin’s President & CEO, Paul Conibear in the statement announcing the deal. “The sale will enable Lundin Mining to advance its strategy to incrementally grow the company with projects and operations we control, while maintaining a strong balance sheet.”

BMO Capital Partners provided financial advisory services to Lundin Mining for the deal, while Paul Weiss and Cassels, Brock and Blackwell acted as legal advisors for the transaction.

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