Photo by: Bloomberg
PERTH (miningweekly.com) – Joint bidders Baosteel and Aurizon Operations could claim a major stake in takeover target Aquila Resources, after the company’s cofounder Charles Bass said that he intended to accept the offer.
Bass holds nearly 10.7% of Aquila’s issued capital.
Both Baosteel and Aurizon on Thursday reported that their shareholding in Aquila had increased from 21.89% to 24.23%. With Bass’ shareholding, this stake could increase to nearly 35%.
Furthermore, fellow co-founder and current executive chairperson Tony Poli accepted the offer, a further 28.9% shareholding would be added to Baosteel and Aurizon’s kitty, giving the joint bidders a controlling interest in Aquila.
Aquila has previously urged shareholders to accept the takeover offer from Baosteel and Aurizon, which were jointly offering Aquila shareholders A$3.40 in cash for every share held, valuing the company at around A$1.4-billion.
If Aquila shareholders fully accepted the takeover offer, Aurizon would end up with a 15% shareholding in Aquila, while Baosteel would own the balance. If only between 50% and 90% of shareholders accept the offer, Aurizon would own a 10% shareholding in the takeover target, with Baosteel retaining the remaining shareholding.