Perhaps we can see a BHP / Chinese skit on Red Faces..
James Bridie
BHP $200m UMC takeover snubs China
After two weeks of speculation, United Minerals Corporation (UMC) has confirmed they have received a takeover offer from BHP Billiton Limited (BHP). Under the terms of the offer BHP said they would offer $1.30 for each United Minerals share, valuing the company at a tick over $200 million.
United Minerals and BHP have said the takeover represents a 43% premium to the closing price on 6 October of 91c, when United Minerals went into a trading halt, while around one-third premium over a variety of other price measures.
United Minerals principal asset is the Railway iron ore deposit in the Pilbara region of Western Australia.
The deal is contingent on a proposed transaction with China Railway Materials Commercial Corp. Group (“CRM”), whereby a placement of shares would be made to the Chinese investor, not going ahead.
The Foreign Investment Review Board (FIRB) had approved the proposal, which was slated to be completed by 7 December.
Chairman of UMC, Alan Birchmore, said the BHP Billiton proposal was superior to the offer from CRM.
“The CRM transaction had a number of attractions for the company, but the BHP Billiton proposal crystallises value for all UMC shareholders now,” Mr Birchmore said.
”By any measurement this is a great result and it offers all of our shareholders an opportunity to deal away the significant development risks which we would need to overcome to bring the deposit into production.“
United Minerals shares are expected to resume trading today.
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