AURIZON AND BAOSTEEL SEAL THE DEAL
Written on the 9 July 2014
AURIZON Holdings Limited (ASX:AZJ) and Baosteel Resources have passed the final hurdle in the long takeover battle for Aquila Resources.
The joint bidders have reached 90.05 per cent relevant interest in the coal miner, exceeding the 90 per cent benchmark to compulsorily acquire the remaining shares.
Aurizon managing director and CEO Lance Hockridge says the announcement paves the way for a number of new projects in the freight industry.
“The successful acquisition of Aquila is an unprecedented opportunity for Aurizon to participate in the development of new, world-class rail and port infrastructure for a range of potential customers,” Hockridge says.
“The Baosteel and Aurizon co-investment model has the scale, strength and infrastructure development expertise to unlock under-developed Australian resource projects and deliver new investment, jobs and regional wealth, and royalty streams for government.”
Aquila chairman Tony Poli accepted the $3.40-per-share offer for his 28.9 per cent stake in the company, before resigning last week.
Aquila is likely to be delisted after the compulsory acquisition is finalised.
Baosteel Resources chairman Zhilhao Dai says the team is “delighted with the overwhelming support” from shareholders accepting the offer.
The joint venture partners plan to advance development of the West Pilbara Iron Ore Project and Eagle Downs Hard Coking Coal Project.
The offer is scheduled to close on July 25.