Sinosteel rules out improved offer for Midwest
China's Sinosteel will not increase its $1.31 takeover offer for Australian iron ore miner Midwest, despite being trumped by rival suitor Murchison Metals.
By Agencies |
SYDNEY: China's Sinosteel has said it will not increase its 1.36 billion dollars (1.31 billion US) takeover offer for Australian iron ore miner Midwest, despite being trumped by rival suitor Murchison Metals.
Sinosteel said its 6.38 dollars a share offered shareholders the certainty of cash, unlike Murchison's all-share bid, which values Midwest at 1.5 billion dollars.
"Our offer price is now final," Sinosteel president Tianweng Huang said in a statement released to the Australian stock exchange late Wednesday.
"After careful review, we have determined that 6.30 dollars is the maximum we are willing to pay to deliver a highly attractive price to Midwest shareholders that reflects the potential of the company and is in line with Sinosteel's assessment of its value."
Midwest's board has unanimously recommended the Murchison bid, while maintaining a recommendation for the Sinosteel offer as it assesses the latest proposal.
Sinosteel already owns almost 20 percent of Midwest shares and has a small stake in Murchison.
It said it believed it could use its shareholder votes to veto the Murchison proposal if required.
Both Midwest and Murchison own iron ore projects in Western Australia which require rail and port infrastructure for their potential to be realised.
Sinosteel said its 6.38 dollars a share offered shareholders the certainty of cash, unlike Murchison's all-share bid, which values Midwest at 1.5 billion dollars.
"Our offer price is now final," Sinosteel president Tianweng Huang said in a statement released to the Australian stock exchange late Wednesday.
"After careful review, we have determined that 6.30 dollars is the maximum we are willing to pay to deliver a highly attractive price to Midwest shareholders that reflects the potential of the company and is in line with Sinosteel's assessment of its value."
Midwest's board has unanimously recommended the Murchison bid, while maintaining a recommendation for the Sinosteel offer as it assesses the latest proposal.
Sinosteel already owns almost 20 percent of Midwest shares and has a small stake in Murchison.
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It said it believed it could use its shareholder votes to veto the Murchison proposal if required.
Both Midwest and Murchison own iron ore projects in Western Australia which require rail and port infrastructure for their potential to be realised.
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