AURIZON ACQUISITION CLEARS HURDLE

AURIZON ACQUISITION CLEARS HURDLE

THE joint bid between Aurizon Holdings Limited (ASX:AZJ) and Baosteel Resources to acquire Aquila Resources Limited, is one step closer after meeting regulations.

Both companies received confirmation letters from the Foreign Investment Review Board (FIRB) indicating no objections to the purchase.

AZJ managing director and CEO Lance Hockridge has welcomed the approval, saying it paves the way for economic investment.

“The offer is the first step in a potential pathway to co-investment in resources and greenfield infrastructure, representing a great opportunity to co-develop world-class rail and port infrastructure in Australia – and in the process generate new jobs, boost national exports and deliver to government significant royalty revenue,” he says.

The freight operator and the China-based resources company will purchase 100 per cent of Aquila shares at $3.40 each.

Baosteel chairman Zhihao Dai says he is pleased the conditionality associated with the deal has been reduced.

“Our compelling offer provides Aquila shareholders with an opportunity to realise certain value for their Aquila shares at a significant premium to the Aquila share price prior to the announcement of the offer.

“At the same time, Baosteel believes the transaction, if successful, provides a genuine opportunity for the development of greenfield resources for the benefit of both Australia and China,” he says.

The offer remains subject to a 50 per cent minimum acceptance condition and customary conditions lodged with ASIC.

There are no Chinese approvals or funding conditions required to be met.

Read more about the joint take-over here.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

ACCC gives Compare the Market operator green light for iSelect takeover

ACCC gives Compare the Market operator green light for iSelect takeover

The Australian Competition & Consumer Commission (ACCC) has ann...

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

In just four short years the co-founders of product development con...

Competition watchdog sniffs at Cochlear-Oticon acquisition

Competition watchdog sniffs at Cochlear-Oticon acquisition

The management at Cochlear (ASX: COH) are hoping to add an extra 75...

Domino’s raising $165m to buy out German partner after settling deal for two new Asian territories

Domino’s raising $165m to buy out German partner after settling deal for two new Asian territories

A day after wrapping up two new Asian territories as part of the bi...