Photo by: Bloomberg
PERTH (miningweekly.com) – The Foreign Investment Review Board (FIRB) has approved Chinese steel giant Baosteel and freight operator Aurizon’s A$1.4-billion bid for ASX-listed Aquila Resources.
FIRB approval was one of the conditions of the A$3.40-a-share offer for all Aquila shares on issue. The offer still remained subject to a minimum 50% acceptance condition.
Baosteel chairperson Zhihao Dai said that the FIRB approval further reduced the already limited conditionality of the offer, which provided Aquila shareholders with an opportunity to realise certain value for their shares at a significant premium.
“Baosteel believes that the transaction, if successful, provides a genuine opportunity for the development of greenfield resources for the benefit of both Australia and China.”
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.
Aquila on Thursday again asked shareholders to refrain from taking any action regarding the offer, until the company’s board could make a formal recommendation.