Australian Securities Exchange Company Announcements Level 4 20 Bridge Street Sydney NSW 2000
FELIX RESOURCES RECOMMENDS ALL-CASH OFFER FROM YANZHOU COAL MINING COMPANY
Highlights Shareholders will receive A$16.95 per share in cash from Yanzhou Shareholders will also receive dividends of A$1.00 per share Shareholders will also receive an in-specie distribution of shares with a cash backing of A$0.05 per share in Felixs subsidiary South Australian Coal Corporation (SACC) The transaction is unanimously recommended by Felixs Board of Directors subject to the opinion of the Independent Expert and in the absence of a superior proposal The consideration reflects an attractive premium to Felixs share price when taking into account the dividends, ,,spin-off of SACC, and recent take-over speculation As part of the A$1.00 per share in total dividends, Felix is today declaring a fully franked dividend of A$0.50 per share. The remainder of the dividends are conditional on approval of the transaction and are expected to be fully franked Consolidates Yanzhous position in the Australian coal market and provides expertise and substantial funding capacity for the continued development of the Moolarben project and for future exploration and development Yanzhou is committed to retaining Felixs existing employees and management and maintaining the current workforce at Yanzhous current Australian operations. Yanzhou will grow the combined workforce as development projects are brought into production and future exploration opportunities become development projects Yanzhou is committed to establishing a strong corporate presence in Australia and will keep Felixs head office located in Australia Yanzhou will continue the timely development of Felixs Moolarben project and remains focused on funding and growing Felixs exploration program in Australia, including the Athena, Wilpeena and Harrybrandt projects Yanzhou will continue the research and development on Felixs Ultra Clean Coal technology at Felixs Cessnock R&D facilities Yanzhou is committed to working with Felixs existing joint venture partners to ensure optimal performance of Felixs assets. These joint venture partners are established multi- national companies Completion of the transaction is subject to regulatory approvals and other conditions including the ,,spin-off by Felix of SACC.
FLX Price at posting:
$16.90 Sentiment: None Disclosure: Held
