midwest and sinosteel may do a deal, page-3

Sinosteel-backed directors join Midwest board

Charlotte Dudley
Thursday, 10 July 2008

AS THREE Sinosteel-endorsed board members get set to take seats on the Midwest Corporation board, the Australian iron ore aspirant has proposed issuing more than three million company shares if Sinosteel successfully acquires a majority stake in the company.

Chinese steelmaker Sinosteel, which is attempting to take over Midwest, has been steadily building up an increasing stake in the iron ore play, most recently lifting its stake in Midwest to 47.14%.

The share proposal – to be undertaken if Sinosteel takes 50.1% of Midwest – would see Midwest issue more than 3 million shares to raise $A19.36 million.

The funds will go towards paying off the company’s corporate advisory fees owed to adviser Morgan Stanley in relation to the Sinosteel takeover.

Meanwhile, at the request of Sinosteel, Midwest has appointed three new directors to its board.

Sinosteel Australia general manager Sijun (Tony) Cheng, Sinosteel Mining vice general manager Hongbin (Michael) Wu and Australia China Business Council vice president Ian McCubbin will join the Midwest board from July 11.

Shares in Midwest were unchanged at $6.40.