There is plenty of intrigue surrounding iron ore hopeful United Minerals’ trading halt.
The explorer, which has a $140 million market value and resources in the Pilbara, yesterday told the market it had received an offer from a third party that could involve a "change of control transaction".
Interestingly, the news took United’s largest shareholder, Thundelarra Exploration, by surprise.
Thundelarra has recently been shopping around its 13.3 per cent stake in United, yet its executive director, Brian Richardson, told Insider his company had not been approached by any party looking to use the stake as a launching pad for a bid.
United recently agreed to a $27.5 million placement to China Railway Materials Commercial Corp that would give the Chinese company control of 11.4 per cent of the company. However, that deal has yet to be approved by the Foreign Investment Review Board and it is unclear whether CRMC would seek to modify the proposal substantially so quickly after it lodged its application.
No other likely Australian-listed candidates for a United bid entered trading halts yesterday, so speculation has centred on the possibility of a foreign group making the offer, with various Chinese groups and Brian Gilbertson’s Pallinghurst Resources floated as potential interested parties.
In any case, the market will be eagerly awaiting the release of more details.
UMC Price at posting:
91.0¢ Sentiment: Buy Disclosure: Held
