Photo by: Bloomberg
PERTH (miningweekly.com) – Speculation arose on Monday that ASX-listed takeover target Aquila Resources and fellow-listed Mineral Resources were on the cusp of a corporate deal after both companies went into a trading halt.
Aquila was currently the target of a A$1.4-billion joint bid by China’s Baosteel Resources and freight giant Aurizon Holdings, offering shareholders A$3.40 in cash for each Aquila share held.
However, last week Mineral Resources acquired more than 52-million shares in an open market transaction, at a price of A$3.75 a share.
At the time, Mineral Resources said that the investment was aimed at ensuring that the company had input in Aquila’s West Pilbara iron-ore project.
The company has, in fact, finalised a total mine-to-port development plan for the West Pilbara project, which included all processing- and mine-related infrastructure, as well as the supply chain through to shiploading, and was prepared to enter into discussions with the project stakeholders with a view to entering lump-sum contracts for construction and delivery of the port and rail infrastructure, and to build, own and operate arrangements for the development of the project.
Aquila and Mineral Resources went into a trading halt on Monday until June 18, pending the announcement of a "potential material corporate transaction".
Baosteel and Aurizon on Friday ruled out an increase to their cash offer for Aquila.