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Australia's Felix recommends 2.8 bln dlr Chinese offer
Sydney (AFP) Aug 13, 2009 Australian miner Felix Resources Thursday urged investors to accept a record 3.3 billion dollar (2.8 billion US) takeover by China's Yanzhou Coal. The offer, after 12 months of talks, reaffirms Chinese interest in Australia's giant resources sector following June's snubbed cash injection for mining giant Rio Tinto, analysts said. The Australian firm said its board of directors unanimously recommended the 16.95 dollars per share deal, saying it was a low-risk strategy for embarking on its next phase of growth. With three of Felix's directors, including chairman Travers Duncan, holding almost 50 percent of the stock, the deal appears all but settled for Yanzhou, China's fourth-largest coal miner. "Given Yanzhou's global expertise in coal mining we believe that Yanzhou is well positioned to continue Felix's development to the benefit of all stakeholders," said Duncan in a statement to the market late Thursday. "Felix will continue to be headquartered in Australia and will continue to generate substantial economic benefits for the economy for many years to come," he added. Once given the green light by shareholders the deal -- which would be the largest takeover of an Australian company by a Chinese state-run firm -- will still be subject to regulatory approvals by Canberra and Beijing, Felix said. Felix said Yanzhou, which is listed in Hong Kong, New York and Shanghai, would finance the acquisition with 1.8 billion Australian dollars in cash, and access to "significant capital from Chinese institutions." Subject to the timely receipt of necessary approvals, including the go-ahead from Australia's foreign investments review board, Felix said it hoped to complete the takeover by December. Chinese moves to buy resources companies -- to gain direct control over raw materials needed for industrial expansion -- have caused unease in here with critics arguing Australian companies and workers will lose out on the deals. The failure of the proposed 19.5 billion US dollar investment in Rio Tinto by China's Chinalco was followed by the detention of four employees, including an Australian citizen, in Shanghai over alleged industrial espionage. China is Australia's second largest trading partner with dealings worth 58 billion US dollars last year. Share This Article With Planet Earth
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China steel makers must stop future projects, says officialBeijing (AFP) Aug 13, 2009 A top government official in China urged steel producers Thursday to stop projects aimed at expanding capacity as Beijing tries to curb a glut in the industry that is dampening prices. "I would like to call on all steel producers, including major ones, not to construct any new projects within the next three years," Li Yizhong, minister of industry and information technology, told reporters. ... read more |
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