Midwest Corporation Ltd has announced it does not need shareolder approval to nominate preferred infrastructure provider Yilgarn Infrastructrue Ltd to develop the $1.5 billion Oakajee Port, following ASX consultation.
The news comes as rival Murchison Metals Ltd confirms that it is not in takeover talks with acquisitive Chinese steelmaker Sinosteel, which recently increased its offer for Midwest. That offer has been unanimously recommended by the Midwest board of directors, however the board has yet to recommend their shares in favour of the increased offer.
The state government has set a May 9 deadline for the nomination of preferred infrastructure providers for the development of Oakajee, with Murchison already nominating subsidiary Oakajee Port and Rail.
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Full announcement below:
After consulting with the ASX, Midwest Corporation Limited ("Midwest") has been advised by the ASX that, in itsopinion, listing rule 10.1 does not apply to the nomination of Yilgarn Infrastructure Limited ("Yilgarn") to the WesternAustralian Government's RFP process for the new Oakajee port and other associated arrangements between Midwest and Yilgarn.
As a consequence of the ASX ruling, Midwest will not be calling a shareholders
meeting in relation to the nomination of Yilgarn and other associated arrangements
with Yilgarn.
Following Sinosteel becoming a substantial shareholder on 24 January 2008,
Midwest became concerned that ASX listing rule 10.1 may apply to a nomination of
Yilgarn. This arose because Midwest understood Yilgarn may be an 'associate' of
Sinosteel and the nomination by Midwest of Yilgarn to respond to the RFP, and entry
into other arrangements with Yilgarn may be a 'disposal' of a 'substantial asset' by
Midwest to an 'associate' (i.e. Yilgarn) of a 'substantial shareholder' (i.e. Sinosteel).
To ensure it complied with the ASX listing rules and to ensure that any requirement
for shareholder approval under listing rule 10.1 was addressed, and to avoid the
possibility of the ASX requiring Midwest to take corrective action, Midwest consulted
with the ASX and then sought the opinion of the ASX on the application of listing rule
10.1.
Midwest Chief Executive Officer, Bryan Oliver said the guidance provided by the ASX
was timely and welcome.
"Midwest has been using and will continue to use its best efforts to achieve a
nomination of Yilgarn to respond to the RFP in time to allow the parties to participate
in the RFP process," Mr Oliver said.
