30/05/2008 - 12:08

Sinosteel amends $1.4bn Midwest offer

30/05/2008 - 12:08

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Chinese steel maker Sinosteel Corporation has declared its $1.36 billion takeover offer for iron ore miner Midwest Corporation Ltd unconditional.

Chinese steel maker Sinosteel Corporation has declared its $1.36 billion takeover offer for iron ore miner Midwest Corporation Ltd unconditional.

Sinosteel has undertaken to pay Midwest shareholders $6.38 cash per share, regardless of its final stake in the company.

The original Sinosteel offer was for $5.60 per share, with an increase to $6.38 per share if Sinosteel earned more than a 50 per cent stake in the company.

Sinosteel will also pay Midwest shareholders $6.38 cash per share even if they have already accepted the earlier offer.

The company has also lifted its stake in Midwest to 20.58 per cent, from 19.89 per cent.

Sinosteel confirmed that its sweetened offer was final on Wednesday after a senior executive revealed at a mining conference in Perth last Friday that the Chinese steel making giant would not up its offer further.

Sinosteel's $6.38 cash per share offer is eclipsed by Midwest's share price, which was down one cent to $7.05 at 1352 AEST after hitting $7.07 in intraday trade.

Midwest shareholders have the choice of accepting the offer or holding on to their shares in anticipation of a proposed merger between Midwest and its one time rival Murchison Metals Ltd.

Sinosteel's offer closes on June 13.

Resolutions to approve Midwest's remuneration report and reappoint David Dato Law and Roger Tan as directors were passed at the company's annual general meeting in Perth today.

Shares in Murchison were seven cents, or 1.69 per cent, lower at $4.08 at 1352 AEST after reaching $4.22 in early trade.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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