CI Resources looking for growth

CI Resources will investigate new investment opportunities in the palm oil, phosphate and fertiliser industries, following its compulsory acquisition of all remaining shares in Phosphate Resources.

The Perth-based company was successful in its takeover bid for Phosphate Resources and now has a 100 per cent stake in the Christmas Island phosphate producer.

The CI Resources board of directors also plans to adopt what it calls “a more consistent approach to dividend returns to shareholders on an ongoing basis.”

The company will therefore provide an interim fully franked dividend of 2.5 cents per share for all issued ordinary shares held on March 16 2015, with payment to be made to shareholders on March 30 2015.

CI Resources recently announced a half-year net profit of $17.15 million for the merged entity.

The merger is the culmination of a lengthy relationship between the two companies.

In January 2010, Business News reported that Phosphate Resources did not support a proposed merger with CI Resources, then a 41.47 per cent shareholder.

However, CI Resources has incrementally increased its shares in Phosphate Resources since then.

In June 2014, CI Resources executive chairman David Somerville told shareholders the company controlled 63.05 per cent of Phosphate Resources.

Phosphate Resources has operated as a public unlisted company, primarily involved in the mining, processing and sale of phosphate rock from its 100 per cent owned phosphate mine on Christmas Island.

CI Resources has also announced the appointments of four new directors and a company secretary.

Lai Ah Hong will take up the position of managing director.

Mr Lai was a founding director of Phosphate Resources and has been its managing director for the past 10 years.

Clive Brown, a former WA minister for state development, is a non-executive director.

He is joined in that position by Chan Khye Meng, an active member of the Christmas Island community and local business owner, and Phua Siak Yeong, who previously worked for the Hong Leong Group in Malaysia.

Kevin Edwards, Chief operating officer of Phosphate Resources, is CI Resources new joint company secretary.