Christmas present not looking good for long term holders, reckon there got some explaining to do
Australasian in halt on Palmer plan
5th August 2008, 9:30 WST
Shares in Australasian Resources were placed in a trading halt this morning pending an announcement relating to a takeover proposal from its biggest shareholder, billionaire Clive Palmer.
Mr Palmer’s Resource Development International last month proposed an all-scrip merger to acquire all Australasian shares as a key plank in an ambitious plan to list RDI as an $18 billion resources giant on the Hong Kong Stock Exchange. The proposal valued Australasian at $2.20 a share. Australasian last traded at $1.34.
Mr Palmer already holds a 66.4 per cent stake in Australasian, which last week appointed RC Capital Advisors and boutique law firm McKenzie Moncrieff to assess the informal bid. A formal takeover proposal looks now set to emerge.
Mr Palmer and his advisers are confident of finalising RDI’s $5 billion to $7 billion initial public offering by Christmas, despite the global financial markets turmoil.
Australasian, along with project partner Shougang, is currently developing the Balmoral South iron ore project in WA, which was acquired from Mr Palmer.
KATE EMERY
ARH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
