29/05/2014 - 14:17

Aquila takeover gets FIRB all-clear

29/05/2014 - 14:17

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Chinese steel giant Baosteel and listed railway operator Aurizon have cleared a key hurdle in their $1.4 billion joint takeover bid for Perth-based Aquila Resources, with the Foreign Investment Review Board giving the green light to the proposed deal.

Aquila Resources executive chairman Tony Poli.

Chinese steel giant Baosteel and listed railway operator Aurizon have cleared a key hurdle in their $1.4 billion joint takeover bid for Perth-based Aquila Resources, with the Foreign Investment Review Board giving the green light to the proposed deal.

Aquila has told shareholders to take no action until the company issues a formal response to the proposal, which requires a 50 per cent minimum acceptance condition.

The unsolicited offer was pitched at $3.40 per share, a nearly 39 per cent premium to Aquila's last closing price of $2.45.

 

The surprise takeover proposal values the company at $1.4 billion, though Baosteel already holds a 19.8 per cent stake.

Baosteel chairman Zhihao Dai said the joint takeover offer provided Aquila shareholders with the oportunity to realise value for their shares "at a significant premium" to the company's trading price prior to the offer.

A bidder’s statement providing full details of the offer is expected to be mailed to Aquila shareholders shortly.

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