Brian Gilbertson leads $320m ConsMin play

Former BHP Billiton chief executive Brian Gilbertson has emerged at the head of a private equity consortium that has agreed to take a 60 per cent stake in Consolidated Minerals Ltd, with plans to expand nationally and overseas.

ConsMin has entered into an elaborate scheme with UK private equity fund Pallinghurst Resources and private coal and energy company AMCI Inc.

Consolidated Minerals will continue to be based in Perth and will be 40 per cent owned by existing ConsMin shareholders.

The other 60 per cent will be held by Pallinghurst, chaired by Mr Gilbertson, and AMCI under the deal, which values the company at $625 million or $2.28 a share.

ConsMin's shareholders will receive $1.38 in cash per share, or $320 million, and two shares in the new company for every five held.

ConsMin's directors have unanimously recommended the offer, saying it was part of an important strategic transformation of the company, with the potential to create significant shareholder value.

In welcoming the proposal, managing director Rod Baxter said the transaction would help transform ConsMin into a mid-tier resource leader, positioning it well to drive further industry consolidation.

The new company would apply to list on the ASX, London's Alternative Investment Market and the Frankfurt Stock Exchange - all three being home to the current ConsMin.

The company will be chaired by current ConsMin chair Dick Carter, with Mr Baxter serving as managing director. The new company will retain all other board members of ConsMin with the exception of Allan Quadrio.

Mr Gilbertson, Arne H Frandsen and AMCI founder Hans Mende will also be appointed to the board.

Pricewaterhouse Coopers has been appointed to provide an independent expert's report for ConsMin shareholders.

ConsMin also released its first-half net profit today, recording a $10.2 million net profit after tax for the first half of the year, a turnaround of $19.9 million from the $9.7 million loss recorded in the previous corresponding period.

In an announcement, Mr Baxter attributed the profit to a recovery in the manganese market and improved earnings contributions across its three businesses.