Photo by: Bloomberg
PERTH (miningweekly.com) – The joint bidders for Australian diversified junior Aquila Resources would move to wrap-up the takeover, after gaining control of more than 90% of the company’s issued capital.
China’s Baosteel and its partner Aurizon Operations said in a joint statement on Wednesday that the companies would exercise their rights to compulsorily acquire all the remaining shares in Aquila.
Baosteel and Aurizon were offering Aquila shareholders A$3.40 in cash for each share, and have urged the ASX-listed company’s remaining shareholders to accept the offer, which was scheduled to close on July 25.
Once the transaction had been completed, Aurizon would have a 15% shareholding in Aquila, while Baosteel would own the balance.
Baosteel chairperson Zhihao Dai said that the two companies were looking forward to progressing Aquila’s projects, including the West Pilbara iron-ore project and the Eagle Downs coking coal project, in Queensland.
Zhihao has previously said that the two companies would work towards quickly progressing Aquila’s major assets, with the Aurizon partnership allowing for significant economic benefits in allowing the developments.
Stage 1 of the West Pilbara project would require a capital investment of A$5.7-billion to deliver about 30-million tonnes a year of iron-ore, over a 15-year mine life.