AURIZON ACQUISITION CLEARS HURDLE

Written on the 29 May 2014

AURIZON ACQUISITION CLEARS HURDLE

THE joint bid between Aurizon Holdings Limited (ASX:AZJ) and Baosteel Resources to acquire Aquila Resources Limited, is one step closer after meeting regulations.

Both companies received confirmation letters from the Foreign Investment Review Board (FIRB) indicating no objections to the purchase.

AZJ managing director and CEO Lance Hockridge has welcomed the approval, saying it paves the way for economic investment.

“The offer is the first step in a potential pathway to co-investment in resources and greenfield infrastructure, representing a great opportunity to co-develop world-class rail and port infrastructure in Australia – and in the process generate new jobs, boost national exports and deliver to government significant royalty revenue,” he says.

The freight operator and the China-based resources company will purchase 100 per cent of Aquila shares at $3.40 each.

Baosteel chairman Zhihao Dai says he is pleased the conditionality associated with the deal has been reduced.

“Our compelling offer provides Aquila shareholders with an opportunity to realise certain value for their Aquila shares at a significant premium to the Aquila share price prior to the announcement of the offer.

“At the same time, Baosteel believes the transaction, if successful, provides a genuine opportunity for the development of greenfield resources for the benefit of both Australia and China,” he says.

The offer remains subject to a 50 per cent minimum acceptance condition and customary conditions lodged with ASIC.

There are no Chinese approvals or funding conditions required to be met.

Read more about the joint take-over here.


Latest News

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

GOLD COAST AIRPORT RECORDS STRONGEST PERIOD IN HISTORY

The Gold Coast Airport recorded its strongest April in history for passenger numbers, supported by a growing numbe...

THE TRAVEL STARTUP THAT EVICTED THE HOUSE-SITTER

YOU'VE used Expedia to book the flights, AirBnB to find accommodation, and Uber to get around in the new city and...

MELBOURNE'S $200M RIALTO PROJECT NEARS COMPLETION AFTER 10 YEARS OF PLANNNG

IT'S BEEN 10 years in the planning and had at least 10 different architects and has involved the acquisition o...

Related News

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

ANALYSTS FORECAST A GRIM CHOICE FOR OROTON: SELL UP OR QUIT THE ASX

FOLLOWING a warning to the market and a subsequent trading halt earlier in the week which has shaved more than $11...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter