AURIZON HOLDINGS LIMITED
ASX Market Announcements
ASX Limited
20 Bridge Street
Sydney NSW 2000
13 June 2014
VP & Company Secretary
Dominic D Smith
Vice President & Company Secretary
Aurizon Holdings Limited
ABN 14 146 335 622
T +61 7 3019 9000
F +61 7 3019 2188
E CompanySecretary@aurizon.com.au
W aurizon.com.au
Level 17, 175 Eagle Street
Brisbane QLD 4000
GPO Box 456
Brisbane QLD 4001
We refer to the Bidders' Statement dated 14 May 2014 (as supplemented by a first supplementary bidders' statement dated 5 June 2014) (Bidders' Statement) in respect of the joint offer (the Offer) by Baosteel Resources Australia Pty Ltd ABN 66 154 815 362 (Baosteel) and Aurizon Operations Limited ABN 47 564
947 264 (Aurizon) (together, the Bidders) to acquire 100% of the ordinary shares in Aquila Resources
Limited ACN 092 002 769 (Aquila) that they do not already own for A$3.40 per share (the Offer Price).
Baosteel Resources International Co. Ltd Chairman Mr Dai Zhihao said: "Over five years Baosteel has tried to support the development of Aquila but believe the company has reached an impasse. Baosteel and Aurizon announced the Offer for Aquila shares with the intention to progress Aquila's stalled development projects.
The full cash Offer gives Aquila shareholders an opportunity to realise certainty of value for their investment at a substantial premium to trading prices prior to the announcement of the Offer. This is in stark contrast to remaining a shareholder of Aquila and facing the challenges and uncertainties of volatile commodity markets, risks of financing large capital expenditure, potentially dilutive capital raisings, and the challenge of developing genuinely economically feasible greenfield projects. If the bid is unsuccessful, and based on the current facts known to us at the date of this announcement, Baosteel sees no meaningful prospect for being involved in the development of the WPIOP. In those circumstances Baosteel (and its related entities) would have to carefully consider their ongoing shareholding in Aquila."
Aurizon Holdings Limited CEO and Managing Director, Mr Lance Hockridge said: "Our Offer gives Aquila shareholders the opportunity to avoid the inherent funding and development risks associated with Aquila's greenfield projects. It is an all-cash offer at a significant premium to the Aquila share price prior to the bid, being a 52.7% premium over the 12 month volume weighted average sale price of Aquila shares to the Offer announcement on 5 May. Aquila shareholders should also take into account that iron ore prices have declined
by about 15% since the Baosteel and Aurizon Offer was announced.
1 Subject to any automatic extension under the Corporations Act
Baosteel and Aurizon together have the capacity to fund, the resources and the genuine capability to progress
Aquila's greenfield projects with the joint venture partners.
In this context, we hope the Aquila Board will consider this compelling and certain all-cash offer in the interest
of all shareholders."
Director
Baosteel Resources Australia Pty Limited
ABN 66 154 815 362
Level 20, Allendale Square
77 St Georges Terrace
Perth W A 6000
AUSTRALIA
Mr Dominic D Smith
Director
Aurizon Operations Limited
ABN 47 564 947 264
Level 17
175 Eagle Street
Brisbane QLD 4001
AUSTRALIA
ENDS For further information regarding the Offer, please contact the Bidder's advisers: Financial adviser (Baosteel):
Damian Pearson
Deutsche Bank
Tel: +61 420 987 851
Paul Glasson Satori Investments Tel: +61 409 354 109
Media Enquiries:
Greg Baxter
Newgate Communications
Tel: 0419 461 368
Offer Information Line:
Within Australia (toll-free): 1300 309 589
Outside Australia: +61 2 8022 7902
Offer Website: www.aquilaoffer.com.au
|
distributed by
|
