Shareholders vote in favour of Perilya takeover

The owner of Broken Hill’s silver, lead and zinc mine is set to be purchased by its major Chinese investor in a deal worth $269.3 million after shareholders voted in favour of the takeover.

China’s No. 3 zinc producer, Zhongjin Lingnan, already have a 53 per cent stake in the company and announced plans to buy the rest of the stock for 35 cents a share.

Director of Perilya's operating subsidiaries Paul Marinko said the move will provide more certainty to mine workers, ABC reported.

He also said it meant the board would have greater control over it’s the mine’s long-term operations.

"You need to consider that as a public company it's a lot more difficult to sustain an operation that's losing money over a long period of time," he said.

"Because shareholders are entitled to say 'why are you bothering' so Zhongjin are able to take a long-term view without having to concern itself with what minority shareholders might think."

Last month the company asked workers to sacrifice $1.8 million in wage increases promised for 2014 after reporting an operating loss of $20 million in the first half of the year.

While earlier this year the miner sacked 17 workers at its Broken Hill mine, blaming tough economic conditions for the move.

Perilya's managing director, Paul Arndt, said he is confident Zhongjin Lingnan will fully support Perilya’s current operations and use their financial strength to underpin the company’s future investment and development plans.

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