05/06/2014 - 15:39

Clock ticking on Aquila takeover

05/06/2014 - 15:39

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Aquila Resources will respond to a $1.4 billion joint takeover bid from listed railway operator Aurizon and Chinese steel giant Baosteel within the next two weeks following the dispatch of a bidders' statement today.

Clock ticking on Aquila takeover
Aquila Resources executive chairman Tony Poli.

Aquila Resources will respond to a $1.4 billion joint takeover bid from listed railway operator Aurizon and Chinese steel giant Baosteel within the next two weeks following the dispatch of a bidders' statement today.

Shareholders are set to receive their copy of the bidders' statement in the mail shortly, with the bidders having started the process of sending the documents.

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.

However Aquila executive chairman Tony Poli said today shareholders would receive a formal response in the form of a target's statement in about 14 days' time.

The unsolicited takeover offer last month for the Perth-based company was pitched at $3.40 per share, a nearly 39 per cent premium to Aquila's last closing price at the time of $2.45.

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

Aurizon and Baosteel last week cleared a key hurdle in the takeover bid, with the Foreign Investment Review Board giving the green light to the proposed deal.

Aquila shares closed the day's trade 3 cents lower at $3.51.

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