10/08/2009 - 15:35

Chinese firm makes bid for RMA Energy

10/08/2009 - 15:35

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China Railway Resources Group Co has today revealed plans to launch a proportional takeover for RMA Energy, offering cash for 80 per cent of shares it does not own in the Perth-based company.

China Railway Resources Group Co has today revealed plans to launch a proportional takeover for RMA Energy, offering cash for 80 per cent of shares it does not own in the Perth-based company.

The Chinese company already holds an 11.2 per cent interest in RMA shares.

Today CREC Resources (Aust), a wholly owned subsidiary of China Railway Resources Group, said it will offer 6.5 cents for each RMA share it does not own.

"The offer reflects a desire on the part of CREC to implement the vision which it shares with RMA in the exploration and development of RMA's Queensland asset," CREC said.

CREC's offer confirms speculation last week that a Chinese company was circling RMA Energy, which placed its shares in a trading halt after announcing it had received an offer from a third party.

The offer is subject to a minimum acceptance condition of 50.1 per cent and receipt of approvals from the Foreign Investment Review Board and Chinese authorities.

RMA Energy holds a number of tenements in Queensland that are prospective for base metals and uranium.

Shares in RMA Energy last traded at 4.7 cents each.

 

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