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

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Brisbane Top Companies revealed

Brisbane Top Companies revealed

Brisbane’s top companies have been a hotbed of growth in 2021...

Brisbane Top Companies 1-10

Brisbane Top Companies 1-10

The top 10 Brisbane listed companies list has seldom changed as muc...

Brisbane Top Companies 11-20

Brisbane Top Companies 11-20

The 11-20 section of the Brisbane Top Companies list is founder-hea...

Brisbane Top Companies 21-30

Brisbane Top Companies 21-30

A battery tech spin-off and an initial public offering (IPO) have c...