https://www.theglobeandmail.com/
Canada’s First Quantum Minerals Ltd. has reached an agreement with Jiangxi Copper Co. Ltd. that significantly curbs the power of its major China-based investor and makes Jiangxi Copper far less likely to act as a mergers and acquisitions kingmaker.
The company has an 18.5-per-cent stake in First Quantum. Its investment predates restrictions introduced by Canada’s federal government that severely limit investment into Canadian critical minerals companies by entities tied to the Chinese state. Jiangxi Copper is the largest copper smelting company in the world and is part-owned by China’s Jiangxi province.
Under a new agreement announced by First Quantum on Tuesday evening, Jiangxi Copper has agreed not to increase its stake or, conversely, dump large quantities of shares without the consent of the Canadian copper miner.
The agreement, which will last for the next three years, also allows First Quantum to dictate who Jiangxi Copper can sell its shares to if the transaction is for a 5-per-cent stake or more. And the agreement prevents Jiangxi Copper from selling to a buyer who would amass more than a 9.9-per-cent stake in First Quantum.
For the rest of this article: https://www.theglobeandmail.com/business/article-first-quantum-reaches-agreement-with-major-chinese-shareholder-jiangxi/