Palmer makes Australasian bid6th August 2008, 12:15 WST Iron ore...

Palmer makes Australasian bid

6th August 2008, 12:15 WST


Iron ore billionaire Clive Palmer has made a formal bid for Perth-based Australasian Resources, the first move in his ambitious plan to build his unlisted company into a diversified resources giant with listings in Hong Kong and Australia.

The scrip deal is likely to be one of many for Mr Palmer’s Resource Development International, which plans to launch a $5 billion initial public offer on the Hong Kong Stock Exchange later this year.

Australasian’s $2.7 billion Balmoral South magnetite project in the Pilbara is understood to form a key part of the ambitions of Mr Palmer, who owns 66.4 per cent of Australasian.

Work on Balmoral South will continue as per current plans with project partner Shougang, the firm said.

Under the deal, Australasian shareholders will receive shares in Mr Palmer’s company Resource Development International in the offer, with the number of shares to be issued determined by dividing $2.20 by the price of the firm’s initial public offer.

The takeover is conditional on the approval of a majority of shareholders not associated with RDI, as well as it securing approval to list on the HKSE.

The company appointed BDO Kendalls Corporate Finance as independent expert to the offer, in addition to their appointment last week of RC Capital Advisors, boutique law firm McKenzie Moncrieff and Ernst & Young as advisors to the deal.

Shares in the company were untraded at $1.34 at 12.15am.

ANDREW HOBBS