BC Iron to challenge withdrawal of Hong Kong takeover bid

The W. Australian junior has applied to Australia's Takeovers Panel to challenge the validity of Regent Pacific's decision to terminate a takeover bid for the company

By Ross Louthean
Mon, 21 Mar 2011

PERTH - BC Iron (ASX: BCI) said today it had written to Regent rejecting its "purported" termination of the Scheme Implementation Agreement (SIA) relating to its intention to takeover BC Iron, and requesting that it be withdrawn.

BC Iron's managing director Mike Young said the company intends to file an application with the Takeovers Panel shortly, seeking a declaration of "unacceptable circumstances and orders requiring it (Regent) to proceed in accordance with the SIA."

Young said the company remains committed to ensuring all its shareholders have an equal opportunity to consider the merits of the scheme of arrangement in a fully informed manner.

Prior to the purported termination of the SIA, the Scheme Booklet and associated documents were well progressed.

Young said should the Takeovers Panel decide to intervene and provide the requested relief, BC Iron will resume the process of finalising the Scheme Booklet and Independent Expert's Report and, as a first step, will be in a position to promptly lodge the Scheme Booklet with ASIC (Australian Securities & Investments Commission).

When the original bid by Hong Kong-based Regent was made BC Iron directors recommended the bid. The takeover would have valued BC Iron at A$345 million (US$346.7 million).

BC Iron had been placed in a trading halt last Thursday after its share price dipped more than 4% to around A$2.54 (US$2.55) after Regent Pacific confirmed it was dropping the bid.

The company became an iron ore producer last month when the first shipment of its ore from Nullagine in Western Australia's Pilbara was shipped from Port Hedland to China in its 50/50 joint venture with Fortescue Metals Group. Fortescue provides the rail and port infrastructure.
(sourced mineweb)