China’s Sinosteel takes over Australian mining companyJuly 12th, 2008 - 8:37 pm ICT by IANS
Beijing, July 12 (Xinhua) China’s second largest iron ore trader Sinosteel Corp has announced it had won a controlling share of Australian iron ore miner Midwest Corp in a hostile takeover. Sinosteel offered 6.38 Australian dollars ($6.17) in cash per share for Midwest. It now holds 213,840,550 shares, or 50.97 percent, of the company. The total offer stood at 1.36 billion Australian dollars ($1.31 billion).
On July 10, Sinosteel appointed three board directors to Midwest: deputy general manager of Sinosteel Mining Development Wu Hongbin, general manager of Sinosteel Australia Mining Cheng Sijun and Australian lawyer Ian MaCubbin. The appointments took effect as of July 11.
Fang Fang, JPMorgan China’s chief executive officer, said the bid was the first successful hostile takeover by a Chinese company. JPMorgan advised Sinosteel in the bid.
Sinosteel was the first Chinese company to participate in overseas mining projects. In 1988, it began to develop the Channar iron mine in Australia’s Pilbara with local companies.
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