Photo by: Reuters
PERTH (miningweekly.com) – China’s steel giant Baosteel and its business partner Aurizon Operations have gained control of diversified miner Aquila Resources.
Aquila on Thursday signed a bid implementation agreement with the two companies, which allowed for an accelerated payment of the takeover offer within five business days after the offer was declared unconditional and acceptances processed.
The agreement also provided for the takeover offer to be freed from all remaining conditions and that the closing date of the offer be extended until July 25.
Furthermore, the bid implementation agreement would allow the bidders to restructure the Aquila board once a 50% acceptance of its offer had been received.
Aquila’s executive chairperson and CEO Toni Poli on Thursday accepted the A$3.40 in cash takeover offer for his personal shareholding in Aquila, which along with cofounder Charles Bass’ acceptance gave Baosteel and Aurizon a shareholding greater than 50%.
As a result, Qinguy Li, Qinghua Zhou, Yiming Wu and Michael Carter would be appointed as directors of Aquila.
ASX-listed Mineral Resources, which holds a 12.78% stake in Aquila, on Thursday also reported that it would accept the joint takeover bid from Baosteel and Aurizon.
Once the transaction had been completed, Aurizon would have a 15% shareholding in Aquila, while Baosteel would own the balance.