Posts Tagged ‘FIRB’

Transurban shares go flying

Friday, November 6th, 2009

Shares in toll-road owner and operator Transurban went skyrocketing yesterday, after the company rejected a $6.8 billion takeover bid from two Canadian pension funds.

Canada Pension Plan Investment Board (“CPPIB”) and Ontario Teachers’ Pension Plan (“OTPP”) offered $5.25 per share, a 20% premium on Wednesday’s close price.

Transurban advised the ASX that the unsolicited offer was rejected in its current form, but that the company remained open to proposals offering better value.

Such a transaction would require approval by the Foreign Investment Review Board (FIRB), as well as by major shareholder CP2, formerly Capital Partners.

Transurban Group
ASX Code: TCL

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Yanzhou dangles a carrot at FIRB

Thursday, October 1st, 2009

In a sweetener no doubt aimed at appeasing the Foreign Investment Review Board, China’s Yanzhou Coal has hinted it may float some of its Australian businesses following a successful takeover of Felix Resources.

Yanzhou’s $3.54 billion offer for Felix is currently before the FIRB, which has been voicing its concerns recently regarding outright takeovers from state-run companies. Last week the FIRB’s general manager suggested joint ventures and investments in listed companies would be more palatable.

Yanzhou is offering $17.95 a share for Felix.

Felix Resources
ASX Code: FLX
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China – Nufarm takeover worth $2.8 billion

Tuesday, September 29th, 2009

Another deal for the record books may be on its way, as Nufarm and China’s Sinochem Corporation enter exclusive negotiations towards what would be China’s biggest takeover in Australia.

Yesterday Nufarm announced an agreement with Sinochem to work on an acquisition proposal under which Sinochem would acquire all ordinary shares in Nufarm for $13 per share, valuing the company at $2.8 billion. If debt is included, the offer is worth $3.8 billion.

The deal must be signed off by regulatory bodies here and in China before shareholders can vote. As the first major non-mining deal with China, this is being seen as a test case for the Foreign Investment Review Board (FIRB).

Nufarm shares leaped up yesterday following this announcement, and closed at $11.96.

Nufarm Limited. ASX Code: NUF
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China – Lynas rare earth deal collapses

Friday, September 25th, 2009

China has ditched plans for a $500 million investment in rare earths company Lynas, after the conditions imposed by the Foreign Investment Review Board were found to be objectionable.

China Nonferrous Metal Mining Co (CNMC) had planned to increase its stake to 51.6%, however the FIRB required the ownership to be less than 50%, and the number of directors on the board to be less than half.

As a result, CNMC is walking away from the deal, leaving Lynas in a trading halt and reassuring the market that other funding sources are being finalised.

The FIRB director yesterday advised Chinese investors to talk to them first, and not use the media to lobby their proposals.

Lynas Corporation, ASX Code: LYC
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Tussle over rare earth minerals

Wednesday, September 2nd, 2009

Australian regulators must soon decide on whether or not to check China’s increasing stranglehold on the rare earth minerals market.

China currently produces 93% of the world’s most rare and valuable elements, two of which are required for various green energy and military technologies.

In Australia, Lynas Corporation and Arafura Resources were ready to open mines last year which could account for a quarter of the world’s production, but after the GFC swept away financial backers, Chinese government-owned companies stepped in with cash.

Australian regulators have already approved the sale of 25% of Arafura, but have deferred a decision on the sale of 51.7% of Lynas until Monday.

Their decision could be influenced by what comes out of a conference in Beijing tomorrow, when it’s expected that the issue of China’s increasing restriction on access to rare earth minerals will be raised by Western governments and multinational corporations.

ASX Code: LYC

ASX Code: ARU

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Rio s secret rights issue plan

Monday, April 6th, 2009

According to British media, Rio Tinto is planning an $8 billion rights issue as a backup plan, if the Chinalco deal falls through.

An article in the Times Online has it that Rio has had this contingency plan in place since February, and suggests this backup source of income will boost the confidence of investors. Intriguing!

Rio Tinto s plan to sell strategic mining assets to Chinalco has faced considerable opposition from major shareholders and from the government s Foreign Investment Review Board, but the share price has nonetheless been on the rise since December.

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