MELBOURNE, Australia: Swiss mining giant Xstrata PLC unveiled a friendly takeover offer for Australia's Jubilee Mines NL worth 3 billion Australian dollars (US$2.8 billion; €2.0 billion), the companies said Monday.

The deal is the latest of a string of purchases by Xstrata in Australia, but marks the miner's first foray into nickel mining in the country.

Xstrata has offered A$23 (US$21.25; €14.77) per share, which represents a 36 percent premium over the average price of Jubilee shares over the past 30 days of trading and a premium of 35 percent to Jubilee's closing price Friday of A$17.10 (US$15.80; €10.98), the companies said in a joint statement.

Jubilee Chairman Kerry Harmanis, who is also the company's founder and largest shareholder, said the board had received a number of expressions of interest and had opened its books to a number of parties, which resulted in the Xstrata offer. Jubilee's board of directors have unanimously recommended the deal.

"Xstrata's bid offers shareholders a compelling opportunity to realize in cash the substantial growth in value created by their investment at an attractive point in the commodity cycle and equity markets overall, without taking on the risks associated with the next phase of Jubilee's development," he said

Jubilee shares surged 39.3 percent Monday to close at A$23.82 (US$21.89; €15.22) on the news.

Xstrata Nickel Chief Executive Ian Pearce said Jubilee is Australia's premier independent nickel company and the deal gives Xstrata a foothold in a renowned nickel province.

"Jubilee offers Xstrata Nickel immediate access to additional production, geographic diversification and introduces substantial near-term growth potential into its portfolio," he said.

Xstrata shares rose 2 percent to 85.55 Swiss francs (US$73.54; €51.13) on the Zurich exchange Monday.

The Anglo-Swiss company recently completed its takeover of the Anvil Hill thermal coal development project from Australia's Centennial Coal Company for A$425 million (US$357 million; €257 million).

It is also in the process of acquiring Austral Coal Ltd. from Centennial, a bid that values the Australian mining company's 86 percent shareholding at A$479 million (US$403 million; €290 million).

Xstrata also has copper and zinc operations in Australia

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drill it and they will come

griz