Felix Resources Ltd says its proposed Chinese suitor has withdrawn its acquisition application to the Foreign Investment Review Board (FIRB) but resubmitted an unchanged application.
The coal-focused miner is currently subject to a friendly takeover by China’s Yanzhou Coal Mining Ltd, which values Felix at more than $3 billion, or $18 a share, including $16.95 cash, a further $1 cash in dividends and 0.5 cents a share worth of in specie shares in another company.
The takeover remains subject to approval by government regulators in both countries and shareholders.
Felix said on Monday it had been advised that Yanzhou had withdrawn and resubmitted its FIRB application with no material amendments.
The move is not expected to delay the transaction timetable set out at the time the takeover offer was announced, Felix said.
The statement from Yanzhou said the resubmission of the FIRB application was made "in order to facilitate the approval processes by the relevant regulatory authorities for the acquisition".
"Yanzhou Coal has been communicating, and continues to communicate with the relevant regulatory authorities of the PRC (People’s Republic of China) government and the Australian government about the transaction," the company said, in a statement to the stock exchange in Hong Kong.
Felix shares ended down 15 cents at $16.95.
Rio Tinto said yesterday it had been given approval by Brazilian authorities for the sale of its Corumba iron ore mine.
Rio said in a statement to the ASX that it had received approval from the Brazilian National Defence Council on the pending sale of the Corumba mine to Brazilian iron ore giant, Vale SA.
The transaction, valued at $US750 million ($A869 million), is expected to close shortly, Rio said.
Rio reached an agreement with Vale in January to sell its Corumba iron ore mine and associated river logistics operations in Paraguay, along with other potash assets in Argentina and Canada, for a total of $US1.6 billion ($A1.85 billion).
Rio has announced a number of asset sales in the last 10 months as it seeks to reduce its debt. It has also raised over $US15 billion in a rights issue and expects to have cut debt from around $A40 billion to about $A20 billion or a bit less by year’s end.
Rio shares closed down $A1.18 at $58.05 yesterday, a fall of 2%.
And shares of construction and contract miner, Leighton Holdings fell 2.5% yesterday after it revealed a subsidiary had been named by the Victorian government to construct the $200 million Western Freeway route between Melton and Bacchus Marsh, west of Melbourne.
The shares fell 93 cents to $36.31.
John Holland Group, a wholly owned subsidiary of Leighton, will construct the freeway in an alliance with Victoria’s highway department, VicRoads, and technical services company AECOM.
John Holland general manager southern region David Moran said in a statement revealing the deal, the company was excited about the commencement of the new work and the opportunity to strengthen its relationship with VicRoads.
"The project has been awarded both on the strength of our project team and the innovative solutions developed to ensure the efficient delivery of the project," Mr Moran said.
The realignment will extend south of the existing freeway and link Harkness Road at Melton West with Bacchus Marsh Road at Bacchus Marsh.
The statement said The Australian Government is contributing $160 million towards the $200 million Western Highway realignment from its Nation Building Program and the Victorian Government is contributing the balance from its $38 billion Victorian Transport Plan.
Work will commence in early 2010 and is expected to be completed by early 2012.
