Caledon Resources receives key approval in GRAM takeover
7:21 am by Andre Lamberti
Caledon recommended a 112 pence per share takeover bid from a subsidiary of GRAM back in September 2010.
Caledon Resources PLC (LON:CDN, ASX:CCD) said it has now received formal approval from the State-owned Assets Supervision and Administration Commission (SASAC) on behalf of the Guangdong Province, a key endorsement in the process of the planned takeover by Guangdong Rising Asset Management (GRAM) - a state-owned Chinese mining company.
GRAM is actively progressing approvals with the remaining Chinese regulatory authorities, Caledon said in a statement.
In light of this development, the parties are in discussion regarding a renewal of the Non-Solicitation Agreement.
Following receipt of the formal approval from SASAC, the following pre-conditions remain to be satisfied: project approval for outbound investment from the National Development and Reform Commission of China on behalf of the State Council; approval for outbound investment from Ministry of Commerce of China; and approval for the remittance of foreign exchange out of China from the State Administration of Foreign Exchange of China; and finalisation by GRAM of the terms of its financing for the acquisition.
GRAM Chairman Li Jinming said: "The receipt of the SASAC approval is a very positive step forward in securing the necessary Chinese regulatory approvals. GRAM remains committed to working with Caledon to complete the possible acquisition of Caledon as soon as possible and our financing banks remain supportive of the possible acquisition. We continue to actively engage with the regulatory authorities in China."
Caledon recommended a 112 pence per share takeover bid from a subsidiary of GRAM back in September 2010.
Caledon operates the Cook coking coal mine in Queensland, Australia.
