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

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Origin slapped with $17m fine for failing to protect vulnerable customers

Origin slapped with $17m fine for failing to protect vulnerable customers

Australian energy giant Origin Energy (ASX: ORG) has today been ord...

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

A Japanese-inspired salad bar from Bondi with "No More Fast Fo...

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

The recent floods that ravaged parts of Southeast Queensland and No...

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Brisbane-based workforce management company PeopleIN (ASX: PPE) has...