Aquila shares surge on takeover bid
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Baosteel and Aurizon have lobbed a joint off-market takeover bid at Aquila Resources that if accepted will see the target's shareholders receive $3.40 per share held.
The offer values the equity in Aquila at approximately $1.4 billion and would also see the bidders take the suitor's 50% stake in the West Pilbara Iron Ore Project.
The proposal offers a 38.8% premium to Aquila's closing share price of $2.45 on Friday and the bidders noted that the suitor's shares have not closed above the offer price since May 2012.
However, investors took up that challenge in late morning trade, pushing shares as high as $3.41, a cent above the offer price and their highest price since May 30, 2012.
At 12pm (AEST) Aquila shares were 36.73% higher at $3.35, against a benchmark index decline of 0.21%.
The proposal is subject to a minimum of 50% approval from shareholders.
Baosteel is one of China's leading iron and steel producers, but the bid requires no Chinese regulatory approvals or funding conditions.
The deal however is still dependent on receiving approval from the Foreign Investment Review Board (FIRB).
If the proposal is successful, Aurizon will own up to 15% of Aquila shares, while Baosteel will own the remaining shares, meaning its holding could be as high as 85%.
Bloomberg data shows Aquila chief executive Anthony Poli currently holds 29% of Aquila, while Baosteel holds 19.79%.
Aquila acknowledged receipt of the bid and said it would form an independent board sub-committee to consider and evaluate the proposal.
The takeover target has appointed Goldman Sachs as its financial advisor and King & Wood Mallesons as its legal advisor.
Call 1300 880 160
Start a chat
Schedule a call
