Chinese Giants Pursue Ecuador Miner

Chinese miner Tongling and China Railway Construction Corp (CRCC) have agreed to acquire Canada-based Corriente Resources for about CAD679m, or CAD8.60 per share in cash, the target says. The operations of Corriente, a gold and copper miner with a market cap of about CAD643m, are all located in Ecuador. The transaction will be made by way of a take-over bid, of which details will be made public February 1, Corriente says. CRCC, one of China’s largest integrated construction companies, has a market cap of about $16bn and Tongling, a mining conglomerate, has a market cap of about $4bn.Citi and Canaccord Adams are Corriente’s financial advisors and had been helping the miner evaluate strategic alternatives for the past 2 years. CIBC World Markets is acting as the independent financial advisor to Corriente’s board while BNP Paribas Capital and Macquarie Capital are advising the buyers. Tongling Nonferrous Metals Group Holdings is bidding with CRCC and their JV CRCC-Tongguan Investment.