looks good news to me - deal done., page-12

http://www.smartcompany.com.au/wealth/20091116-clive-palmer-could-become-australia-s-richest-person-with-new-float.html


Clive Palmer could become Australia’s richest person with new float
Monday, 16 November 2009 10:44
James Thomson
Queensland-based mining entrepreneur Clive Palmer could become Australia's richest person after the float of his company Resourcehouse, with one valuation suggesting the company could be worth as much as $16 billion.
Palmer, who was valued at $3.42 billion by BRW earlier this year, has always claimed to be worth far more. On television report on the magnate placed his wealth at $12 billion.

If the Resourcehouse float goes particularly well, that estimate might well be on the money.

The Resourcehouse vehicle includes a variety of undeveloped assets collected by Palmer during the last few years. These include a coalmine in Queensland valued at up to $7.5 billion, an iron ore mine in Western Australia valued at $2.7 billion, offshore gas and exploration permits, iron ore exploration permits in South Australia and oil and gas exploration permits in WA's Canning Basin.

The company is set to be floated on the Hong Kong sharemarket in the next few months. Palmer has strong links to China and is keen to access the strong investor appetite for resources companies in that market.

Palmer currently owns 100% of the company, but is believed to be selling $2-3 billion worth of shares in the float.

According to a report in the Australian Financial Review, broker UBS, which is co-managing the float, values the company at between $10 billion and $16 billion.

Macquarie Group, which is also managing the float, has reportedly placed a conservative valuation of $US5 billion (AUS $5.3 billion) and $US6 billion (AUS$6.4 billion).

Even at the conservative valuation, Palmer would easily become Australia's richest person, toppling BRW's top three of Anthony Pratt ($4.3 billion in late May), Frank Lowy ($4.2 billion) and Harry Triguboff ($3.66 billion).

The successful float of Resourcehouse would can a phenomenal rise for Palmer, who emerged three years ago as the rising heavyweight of Australian business.

Palmer made his first fortune selling Gold Coast property before retiring in the early 1980s at the age of 29.

After a spot of travelling and a stint as media manager for Sir Joh Bjelke-Petersen's all-powerful Queensland National Party, Palmer got tired of the good life and started his business comeback.

In the mid-1980s he started three companies in the areas of oil trading, R&D and mining. Palmer snapped up the assets of two American companies that were pulling out of Australia, including a series of iron-ore tenements in the Pilbara that would become the bedrock of his fortune.

This will be Palmer's second attempt at a giant Hong Kong float. His first was scuttled last year due to the onset of the GFC.