By: Esmarie Swanepoel
18th September 2012
PERTH (Mining Weekly) - ASX-listed diversified junior Western Desert has received a A$435-million takeover offer from China’s Meijin Energy Group.
Meijin was offering Western Desert shareholders A$1.08 in cash for each share held, with option holders having the right to exercise their options and participate in the offer.
The offer was a 50% premium on the 30-day volume weighted average price (VWAP) of Western Desert shares, and a 49% premium to the 60-day VWAP.
“This offer from a major Chinese corporation represents excellent value for shareholders,” said Western Desert chairperson Rick Allert.
He noted that the board would now appoint an independent expert to assess whether the transaction was fair and reasonable, and in the best interest of shareholders. If this was proven to be the case, the board would recommend the offer to shareholders, in the absence of a superior offer.
The takeover offer was conditional upon the completion of a due diligence, as well as the approval of the Foreign Investment Review Board and Chinese government authority approval.
Western Desert was currently developing its flagship Roper Bar iron-ore project, in the Northern Territory. The project would initially involve the construction of an openpit operation with 1.5-million tons a year of capacity, later increasing to three-million tons a year by the third year of operation.
Construction was slated to start later this year, and production was expected in 2013.
Meijin chairperson Junliang Yao said that the company was looking forward to the development of the Roper Bar project.
“This is a great resource and will fit into Meijin’s long-term strategy in Australia, and we would like to see the resource develop to be a flagship project of the Northern Territory.”
Meijin is the largest private commercial coke producer in China, and is currently undertaking the development of a 4.2-billion ton Galilee basin coal deposit, in Queensland. Large scale production at the project was expected to start in 2016.
Edited by: Creamer Media Reporter
18th September 2012
PERTH (Mining Weekly) - ASX-listed diversified junior Western Desert has received a A$435-million takeover offer from China’s Meijin Energy Group.
Meijin was offering Western Desert shareholders A$1.08 in cash for each share held, with option holders having the right to exercise their options and participate in the offer.
The offer was a 50% premium on the 30-day volume weighted average price (VWAP) of Western Desert shares, and a 49% premium to the 60-day VWAP.
“This offer from a major Chinese corporation represents excellent value for shareholders,” said Western Desert chairperson Rick Allert.
He noted that the board would now appoint an independent expert to assess whether the transaction was fair and reasonable, and in the best interest of shareholders. If this was proven to be the case, the board would recommend the offer to shareholders, in the absence of a superior offer.
The takeover offer was conditional upon the completion of a due diligence, as well as the approval of the Foreign Investment Review Board and Chinese government authority approval.
Western Desert was currently developing its flagship Roper Bar iron-ore project, in the Northern Territory. The project would initially involve the construction of an openpit operation with 1.5-million tons a year of capacity, later increasing to three-million tons a year by the third year of operation.
Construction was slated to start later this year, and production was expected in 2013.
Meijin chairperson Junliang Yao said that the company was looking forward to the development of the Roper Bar project.
“This is a great resource and will fit into Meijin’s long-term strategy in Australia, and we would like to see the resource develop to be a flagship project of the Northern Territory.”
Meijin is the largest private commercial coke producer in China, and is currently undertaking the development of a 4.2-billion ton Galilee basin coal deposit, in Queensland. Large scale production at the project was expected to start in 2016.
Edited by: Creamer Media Reporter
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