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Meijin bids for Aussie mining firm
By Richard Fu |
September 19, 2012, Wednesday
|
Print Edition
Print Edition
Meijin Energy Group Co, a private Chinese coke producer, has offered A$435 million (US$454 million) for diversified Australian miner Western Desert Resources.
Analysts said the latest takeover bid may reflect a return of interest in Australia's resources sector, where falling commodity prices have hit share prices of mining companies and delayed or derailed some potential deals.
Meijin's bid of A$1.08 per share represented a 26 percent premium to Western Desert's last-traded price prior to yesterday's announcement.
"The offer from a major Chinese corporation represents excellent value for shareholders," Western Desert Chairman Rick Allert said in a statement.
The Australian miner, whose asset portfolio includes iron ore, gold, copper, uranium and other base metals, surged 10.5 percent to 94.50 Australian cents yesterday, the highest close in three months.
Western Desert said its board intends to recommend that shareholders accept Meijin's offer once an independent expert assesses the proposal and in the absence of a superior bid. The takeover offer is subject to regulatory approvals in both countries.
Meijin has operations in coal mining, coke production and steel making across China.
Analysts said the latest takeover bid may reflect a return of interest in Australia's resources sector, where falling commodity prices have hit share prices of mining companies and delayed or derailed some potential deals.
Meijin's bid of A$1.08 per share represented a 26 percent premium to Western Desert's last-traded price prior to yesterday's announcement.
"The offer from a major Chinese corporation represents excellent value for shareholders," Western Desert Chairman Rick Allert said in a statement.
The Australian miner, whose asset portfolio includes iron ore, gold, copper, uranium and other base metals, surged 10.5 percent to 94.50 Australian cents yesterday, the highest close in three months.
Western Desert said its board intends to recommend that shareholders accept Meijin's offer once an independent expert assesses the proposal and in the absence of a superior bid. The takeover offer is subject to regulatory approvals in both countries.
Meijin has operations in coal mining, coke production and steel making across China.
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