Saturday, 25 Feb 2012
INDIA’S Adani Group plans to spend as much as USD 6 billion in Australia over the next three years to develop coal mines and related infrastructure and is interested in buying a majority stake in a gas company at home as the conglomerate gears up to expand operations.
Mr Ameet H Desai spokesman told a news conference that in Australia, Adani will invest at the Abbot Point coal terminal where it acquired operating rights last year, with funds also going to mining activities and building a railway line connecting the terminal with its coal mines in the Galilee basin.
Mr Desai said the group is arranging the funds through a mix of equity, debt and internal accruals.
The group plans to use coal sourced from Australia to run its own power stations and also for trading, primarily in India where a shortage of the dry fuel is hurting power generation.
Demand for coal is rising in India as many new power stations are coal based, but complicated environmental clearances and problems in land acquisition are delaying domestic mining projects.
The group started mine exploration work at the Galilee basin.
Its Adani Ports and Special Economic Zone unit spent USD 2 billion for a 99 year lease of the Abbot Point terminal in Queensland. The terminal can handle 21 million metric tonnes coal a year.
An executive said the company is refinancing most of the bridge loan taken to fund the Abbot Point deal through another loan of USD 1.8 billion. The loan will be from four Australian banks and the process should be completed in a few weeks.
Meanwhile, chairman Mr Gautam Adani said the group is interested in buying BG Group's 65% stake in India's Gujarat Gas Co. He didn't give details, but spokesman Mr Desai said the group is conducting due diligence before submitting a bid.
(sourced Theaustralian.com.au)
Showing posts with label stake. Show all posts
Showing posts with label stake. Show all posts
Saturday, February 25, 2012
Thursday, February 23, 2012
JFE will not up hike stake in JSW Steel - Mr Seshagiri Rao
Thursday, 23 Feb 2012
CNBC-TV18 reported that Mr Seshagiri Rao the joint MD and group CFO of JSW Steel has told that there is no plan today that JFE will increase their stake in JSW beyond 15%.
During an interview with CNBC TV18, while answering to question “Debt levels still remain quite high and JFE Steel a couple of weeks back raised some stake in your company. Now that they have the headway to go all the way up to 25%, is that an option that you may consider in order to bring in higher participation from them and perhaps more cash as well to de-stress the balance sheet”, Mr Rao said “Today, the balance sheet of JSW is not stressed at all. If we look at the overall consolidated debt as on December 31, it was 1.08:1. This is taking into account the FCCBs which we raised as debt only. So balance sheet wise we are quite okay.”
He added “We have 11 million tonne installed and an operating capacity as part of JSW. We don't need any additional equity to come into the company. As per the current agreement with JFE, their overall equity holding is restricted to 15%. They have recently enhanced only to reach the 15% threshold. Otherwise, there is no plan today that JFE will increase their stake in JSW beyond 15%.”
(sourced moneycontrol.com)
CNBC-TV18 reported that Mr Seshagiri Rao the joint MD and group CFO of JSW Steel has told that there is no plan today that JFE will increase their stake in JSW beyond 15%.
During an interview with CNBC TV18, while answering to question “Debt levels still remain quite high and JFE Steel a couple of weeks back raised some stake in your company. Now that they have the headway to go all the way up to 25%, is that an option that you may consider in order to bring in higher participation from them and perhaps more cash as well to de-stress the balance sheet”, Mr Rao said “Today, the balance sheet of JSW is not stressed at all. If we look at the overall consolidated debt as on December 31, it was 1.08:1. This is taking into account the FCCBs which we raised as debt only. So balance sheet wise we are quite okay.”
He added “We have 11 million tonne installed and an operating capacity as part of JSW. We don't need any additional equity to come into the company. As per the current agreement with JFE, their overall equity holding is restricted to 15%. They have recently enhanced only to reach the 15% threshold. Otherwise, there is no plan today that JFE will increase their stake in JSW beyond 15%.”
(sourced moneycontrol.com)
Tuesday, February 14, 2012
PT Resource Alam takes over four coal miners in East Kalimantan
Tuesday, 14 Feb 2012
Coal miner PT Resource Alam Indonesia said that it has spent USD 7.9 million to acquire controlling stakes in four coal mining companies in East Kalimantan.
The company in a statement said that Resource Alam purchased a 75% stake in each of the firms: PT Kaltim Mineral, PT Jaya Mineral, PTTambang Mulia and PT Chaido Mega Mineral.
The statement said that “Future development of the newly acquired concessions, in addition to the company’s organic growth, is in alignment with Resource Alam’s long term objective to become one of Indonesia’s major coal producers.”
Resource Alam previously commissioned mining consultant PT Britindo to conduct geological studies of the coal mining concessions, which span 28,521 hectares, and their prospective open-cut potential.
Indonesia, the world’s largest coal exporter, is expected to produce 340 million tons this year, including 6 million tons expected to be produced by Resource Alam.
Mr Eric Tirtana Resource Alam’s investor relations chief told The Jakarta Post that “The newly acquired fields are still green fields, they’re not yet producing. The potentials are still being analyzed. We’re still counting on organic growth for the year.”
Chaido is the closest to starting operations next year, on 5,000 hectares near Resource Alam’s northern block. Resource Alam spent USD 1.67 million to acquire the company’s 75% stake.
Meanwhile, Kaltim Mineral, Jaya Mineral and Tambang Mulia will start production in 2015 on a combined adjoining area of 23,521 hectares. A 75% stake in each of the three firms was valued at USD 6.25 million.
(sourced Thejakartapost.com)
Coal miner PT Resource Alam Indonesia said that it has spent USD 7.9 million to acquire controlling stakes in four coal mining companies in East Kalimantan.
The company in a statement said that Resource Alam purchased a 75% stake in each of the firms: PT Kaltim Mineral, PT Jaya Mineral, PTTambang Mulia and PT Chaido Mega Mineral.
The statement said that “Future development of the newly acquired concessions, in addition to the company’s organic growth, is in alignment with Resource Alam’s long term objective to become one of Indonesia’s major coal producers.”
Resource Alam previously commissioned mining consultant PT Britindo to conduct geological studies of the coal mining concessions, which span 28,521 hectares, and their prospective open-cut potential.
Indonesia, the world’s largest coal exporter, is expected to produce 340 million tons this year, including 6 million tons expected to be produced by Resource Alam.
Mr Eric Tirtana Resource Alam’s investor relations chief told The Jakarta Post that “The newly acquired fields are still green fields, they’re not yet producing. The potentials are still being analyzed. We’re still counting on organic growth for the year.”
Chaido is the closest to starting operations next year, on 5,000 hectares near Resource Alam’s northern block. Resource Alam spent USD 1.67 million to acquire the company’s 75% stake.
Meanwhile, Kaltim Mineral, Jaya Mineral and Tambang Mulia will start production in 2015 on a combined adjoining area of 23,521 hectares. A 75% stake in each of the three firms was valued at USD 6.25 million.
(sourced Thejakartapost.com)
Thursday, January 26, 2012
Ms Rinehart fortune to soar on POSCO deal
Thursday, 26 Jan 2012
Australia's richest person, iron ore magnate Ms Gina Rinehart could see her fortune nearly double to AUD 20 billion after South Korean steel giant POSCO moved to increase its stake in the Roy Hill iron ore project.
POSCO last week announced it would pay KRW 1.8 trillion (AUD 1.5 billion) to raise its interest in the project to 15% by mid 2014.
POSCO the world's third-largest steelmaker, already owns 3.75% of Roy Hill. The deal places an estimated value of AUD 10 billion on the project in Western Australia's Pilbara region.
Roy Hill is a joint venture between Ms Rinehart's company Hancock Prospecting and Posco, which says it is still in talks to finalise the purchase.
POSCO announced its intention to acquire 15% of Roy Hill in 2010 but did not reveal the value of the deal until last week.
(Sourced from ABC/Reuters)
Friday, December 9, 2011
Glencore takes stake in SA coal firm
Friday, Dec 09 2011
Johannesburg - Commodities giant Glencore said on Wednesday it has completed the acquisition of a 43.66% stake in an unlisted South African coal mining business for R900m.
Glencore said in a statement that the stake in Umcebo Mining gives it access to South Africa’s principal coal field in the northeastern Mpumalanga province.
“In addition the transaction also secures access to an eventual 1.5 million metric tonnes of export allocation in Phase V of the Richards Bay Coal Terminal,” it said.
Umcebo has three thermal coal mines in operation and a stand-alone wash plant, with a total annual production capacity of 7.2 million run of mine metric tonnes.
Glencore has also been trying to gain control of South African coal miner Optimum as part of its strategy to become a major force in all top coal exporting regions.
Sourced: Reuters
Johannesburg - Commodities giant Glencore said on Wednesday it has completed the acquisition of a 43.66% stake in an unlisted South African coal mining business for R900m.
Glencore said in a statement that the stake in Umcebo Mining gives it access to South Africa’s principal coal field in the northeastern Mpumalanga province.
“In addition the transaction also secures access to an eventual 1.5 million metric tonnes of export allocation in Phase V of the Richards Bay Coal Terminal,” it said.
Umcebo has three thermal coal mines in operation and a stand-alone wash plant, with a total annual production capacity of 7.2 million run of mine metric tonnes.
Glencore has also been trying to gain control of South African coal miner Optimum as part of its strategy to become a major force in all top coal exporting regions.
Sourced: Reuters
Thursday, November 17, 2011
Ternium bidding for major stake in Usiminas
Thursday, 17 November 2011
Brazilian magazine Exame reported Wednesday that Latin American steelmaker Ternium has offered to pay 40 reais (US$22.6) per share to current stakeholders Camargo Correa and Grupo Votorantim to acquire their combined 26 percent stake in Brazilian flat rolled steelmaker Usiminas.
Ternium's reported offer price is an approximately 70 percent premium of the current value of Usiminas' shares as of Wednesday evening. Exame's reports also indicate that Camargo and Grupo Votorantim have already voiced their willingness to sell their stakes at Ternium's offer price.
Tags: coated , hrc , crc , galvanized , Luxembourg , Brazil , flats , European Union , Europe , South America , steelmaking , M&A
Sourced:SteelOrbis
Brazilian magazine Exame reported Wednesday that Latin American steelmaker Ternium has offered to pay 40 reais (US$22.6) per share to current stakeholders Camargo Correa and Grupo Votorantim to acquire their combined 26 percent stake in Brazilian flat rolled steelmaker Usiminas.
Ternium's reported offer price is an approximately 70 percent premium of the current value of Usiminas' shares as of Wednesday evening. Exame's reports also indicate that Camargo and Grupo Votorantim have already voiced their willingness to sell their stakes at Ternium's offer price.
Tags: coated , hrc , crc , galvanized , Luxembourg , Brazil , flats , European Union , Europe , South America , steelmaking , M&A
Sourced:SteelOrbis
Tuesday, November 15, 2011
JFE looking at increasing stake in JSW Steel
Tuesday, 15 Nov 2011
Japan’s JFE Holdings Inc is eyeing a larger chunk of JSW Steel Ltd, India’s third biggest steel maker hoping to take advantage of a steep fall in the share price and recently eased takeover norms.
According to Bombay Stock Exchange data, JFE had a 14.78% stake in JSW on September 30th
Mr Hironobu Fukushima head of corporate communications at JFE Steel Corp said that “We expect to start talking soon with JSW Steel.” But declined to elaborate.
JFE acquired a 14.99% stake in JSW in July 2010 in return for certain technology and technical assistance for automotive steel production. JSW issued 32 million shares at INR 1,500 apiece.
JFE’s Fukushima said under Japanese law, if a company acquires more than 20% of the voting rights in another company, the latter becomes an equity method affiliate of the buyer. If the second firm is an important equity method affiliate of the first, its performance must be included in the latter’s financial statements. The level of importance is decided by the acquiring company.
, he said.
This implies that if JFE considers JSW an important affiliate, it will vie for a 20-24% stake in the Indian firm, just short of the 25% open offer trigger that requires the buyer to offer to purchase more shares from the public. The previous trigger was 15%. India’s new takeover code took effect on 22 October.
(sourced:livemint)
Japan’s JFE Holdings Inc is eyeing a larger chunk of JSW Steel Ltd, India’s third biggest steel maker hoping to take advantage of a steep fall in the share price and recently eased takeover norms.
According to Bombay Stock Exchange data, JFE had a 14.78% stake in JSW on September 30th
Mr Hironobu Fukushima head of corporate communications at JFE Steel Corp said that “We expect to start talking soon with JSW Steel.” But declined to elaborate.
JFE acquired a 14.99% stake in JSW in July 2010 in return for certain technology and technical assistance for automotive steel production. JSW issued 32 million shares at INR 1,500 apiece.
JFE’s Fukushima said under Japanese law, if a company acquires more than 20% of the voting rights in another company, the latter becomes an equity method affiliate of the buyer. If the second firm is an important equity method affiliate of the first, its performance must be included in the latter’s financial statements. The level of importance is decided by the acquiring company.
, he said.
This implies that if JFE considers JSW an important affiliate, it will vie for a 20-24% stake in the Indian firm, just short of the 25% open offer trigger that requires the buyer to offer to purchase more shares from the public. The previous trigger was 15%. India’s new takeover code took effect on 22 October.
(sourced:livemint)
Tuesday, November 1, 2011
Indonesia's Borneo Lumbung to buy Bumi stake for $1 bln
Tue Nov 1, 2011
* Deal to help Bakrie pay bulk of $1.35 bln debt, avoid default
* Deal values Bumi Plc at 10.91 pound each
* Talks with Glencore fail because lenders uncomfortable
* UBS says deal is net positive for Bumi
By Saeed Azhar and Fathiya Dahrul
SINGAPORE/JAKARTA, Nov 1 (Reuters) - Indonesia's Bakrie Group is selling a 23.8 percent stake in London-listed Bumi Plc , its joint venture with financier Nathaniel Rothschild, to coal miner PT Borneo Lumbung Energi in a $1 billion deal to avoid a loan default.
The deal with Borneo, which is backed by Indonesian billionaire businessman Samin Tan, would help Bakrie pay off the bulk of an $1.35 billion loan and extricate itself from a debt crunch that has weighed on the share price of the world's largest thermal coal exporter Bumi Resources .
The agreement between the Bakrie Group, run by one of Indonesia's most powerful families, and Tan marks the second time in three years that the Bakrie family has had to scramble together a transaction to ease its debt load.
The deal was sealed after Glencore , the world's largest diversified commodity trader, dropped out of talks on refinancing the Bakrie loan.
It also marks the second time Tan, a former partner at accounting firm Deloitte, has negotiated to buy a stake in Bumi, having failed to strike a bold deal in 2006.
Tan succeeded this time, with PT Borneo confirming the agreement in a statement, adding that the total consideration of $1 billion valued Bumi plc's shares at approximately 10.91 pounds each at the date of the announcement. That translates to a 6 percent premium to the last 6-month volume-weighted average price, and would be payable in cash.
"The biggest haircut in this deal has been taken by the Bakries," said a source with direct knowledge of the deal. "They have lost half their stake in Bumi Plc."
GLENCORE DEAL FELL THROUGH
Sources close to the deal told Reuters earlier that talks between the Bakrie Group and Swiss-based Glencore, the previous frontrunner, fell through because lenders were not comfortable with the structure of the proposal.
Glencore had been looking for additional marketing rights over Bumi's coal in return for lending Bakrie $800-$900 million.
"We think it is net positive for Bumi not having to incur higher marketing costs from allocating greater volumes to the trader," said Singapore-based UBS analyst Andreas Bokkenheuser in a note to clients.
However stock investors remained apprehensive as shares of PT Bumi Resources , Asia's biggest thermal coal exporter, and coking coal producer PT Borneo Lumbung Energi & Metal both fell.
PT Borneo dropped 11.7 percent and Bumi fell 4.3 percent, compared with a fall of 1.3 percent for Jakarta's benchmark index .
Tan indirectly controls 73 percent of PT Borneo and also owns Indonesian investment bank Renaissance Capital.
The Bakrie Group, a sprawling conglomerate with interests in property, energy, plantations, coal and telecoms, also fended off debt crises in 1998 and 2008.
Its controlling family is headed by Aburizal Bakrie, chairman of Indonesia's Golkar Party, who many analysts believe will run for the presidency of Southeast Asia's largest economy in 2014.
CONTROL OF MINES
Tan, an ethnic Chinese Indonesian from the small city of Bengkalis in central Sumatra, has previously played down any direct connection with the powerful Bakrie family.
In a 2006 interview with Reuters, he said he was a "simple, homegrown financial professional" and added that Renaissance was independent of Bakrie.
The deal, which would keep control of the Bakrie Group's world-class mines in Indonesian hands, is part of the family's attempts to refinance the loan obtained in March this year to consolidate debts.
Credit Suisse arranged the loan, secured against the Bakrie Group's roughly 47 percent stake in Bumi Plc, and lenders included the Swiss bank and a group of hedge funds.
Glencore, which already markets Bumi coal, has frequently used its deep pockets to help out troubled counterparties, cementing the relationships it sees as key to its business.
The world's largest diversified commodity trader had been ahead of rival Vitol and others in negotiating a deal.
Standard Chartered is advising Borneo and is also arranging the financing, while Credit Suisse is advising the Bakrie family and its various entities, the sources said.
"This transaction creates a partnership between two leading mining groups in Indonesia," said Tan, who is also president director of PT Borneo, in a statement.
"The transaction also provides BORN (Borneo) with exposure to a high quality metals portfolio, thus transforming BORN from a pure coking coal producer into a world class diversified natural resources producer."
After the transaction, Borneo together with PT Bakrie & Brothers Tbk and Long Haul Holdings -- companies controlled by the Bakrie Group -- would own an approximate 47.6 percent stake and an approximate 29.99 percent voting interest in Bumi Plc, according to the document seen by Reuters.
The deal is subject to approval of Borneo shareholders in a meeting on Dec. 15 -- a formality since the deal document states Tan's vehicle, PT Republik Energi & Metal, will put its 73 percent holding behind the agreement -- and certain other conditions, including regulatory approvals.
Bumi Resources' share price has been weighed down by investor concerns over high debt levels and transparency. Indonesia's stock exchange said last year it would fine three Bakrie firms, including the family's holding firm Bakrie & Bros, for failing to explain discrepancies in their financial reports.
The London-listing, a joint venture engineered by Rothschild, the billionaire scion of the European banking dynasty, through a complex reverse takeover, was meant to bring greater corporate governance and better access to capital.
But a sharp decline since June in the share price of Bumi Plc amid falling equity and commodity markets triggered a mandatory repayment clause on the one-year $1.35 billion loan that had been due to mature in March 2012.
(sourced Reuters)
* Deal to help Bakrie pay bulk of $1.35 bln debt, avoid default
* Deal values Bumi Plc at 10.91 pound each
* Talks with Glencore fail because lenders uncomfortable
* UBS says deal is net positive for Bumi
By Saeed Azhar and Fathiya Dahrul
SINGAPORE/JAKARTA, Nov 1 (Reuters) - Indonesia's Bakrie Group is selling a 23.8 percent stake in London-listed Bumi Plc , its joint venture with financier Nathaniel Rothschild, to coal miner PT Borneo Lumbung Energi in a $1 billion deal to avoid a loan default.
The deal with Borneo, which is backed by Indonesian billionaire businessman Samin Tan, would help Bakrie pay off the bulk of an $1.35 billion loan and extricate itself from a debt crunch that has weighed on the share price of the world's largest thermal coal exporter Bumi Resources .
The agreement between the Bakrie Group, run by one of Indonesia's most powerful families, and Tan marks the second time in three years that the Bakrie family has had to scramble together a transaction to ease its debt load.
The deal was sealed after Glencore , the world's largest diversified commodity trader, dropped out of talks on refinancing the Bakrie loan.
It also marks the second time Tan, a former partner at accounting firm Deloitte, has negotiated to buy a stake in Bumi, having failed to strike a bold deal in 2006.
Tan succeeded this time, with PT Borneo confirming the agreement in a statement, adding that the total consideration of $1 billion valued Bumi plc's shares at approximately 10.91 pounds each at the date of the announcement. That translates to a 6 percent premium to the last 6-month volume-weighted average price, and would be payable in cash.
"The biggest haircut in this deal has been taken by the Bakries," said a source with direct knowledge of the deal. "They have lost half their stake in Bumi Plc."
GLENCORE DEAL FELL THROUGH
Sources close to the deal told Reuters earlier that talks between the Bakrie Group and Swiss-based Glencore, the previous frontrunner, fell through because lenders were not comfortable with the structure of the proposal.
Glencore had been looking for additional marketing rights over Bumi's coal in return for lending Bakrie $800-$900 million.
"We think it is net positive for Bumi not having to incur higher marketing costs from allocating greater volumes to the trader," said Singapore-based UBS analyst Andreas Bokkenheuser in a note to clients.
However stock investors remained apprehensive as shares of PT Bumi Resources , Asia's biggest thermal coal exporter, and coking coal producer PT Borneo Lumbung Energi & Metal both fell.
PT Borneo dropped 11.7 percent and Bumi fell 4.3 percent, compared with a fall of 1.3 percent for Jakarta's benchmark index .
Tan indirectly controls 73 percent of PT Borneo and also owns Indonesian investment bank Renaissance Capital.
The Bakrie Group, a sprawling conglomerate with interests in property, energy, plantations, coal and telecoms, also fended off debt crises in 1998 and 2008.
Its controlling family is headed by Aburizal Bakrie, chairman of Indonesia's Golkar Party, who many analysts believe will run for the presidency of Southeast Asia's largest economy in 2014.
CONTROL OF MINES
Tan, an ethnic Chinese Indonesian from the small city of Bengkalis in central Sumatra, has previously played down any direct connection with the powerful Bakrie family.
In a 2006 interview with Reuters, he said he was a "simple, homegrown financial professional" and added that Renaissance was independent of Bakrie.
The deal, which would keep control of the Bakrie Group's world-class mines in Indonesian hands, is part of the family's attempts to refinance the loan obtained in March this year to consolidate debts.
Credit Suisse arranged the loan, secured against the Bakrie Group's roughly 47 percent stake in Bumi Plc, and lenders included the Swiss bank and a group of hedge funds.
Glencore, which already markets Bumi coal, has frequently used its deep pockets to help out troubled counterparties, cementing the relationships it sees as key to its business.
The world's largest diversified commodity trader had been ahead of rival Vitol and others in negotiating a deal.
Standard Chartered is advising Borneo and is also arranging the financing, while Credit Suisse is advising the Bakrie family and its various entities, the sources said.
"This transaction creates a partnership between two leading mining groups in Indonesia," said Tan, who is also president director of PT Borneo, in a statement.
"The transaction also provides BORN (Borneo) with exposure to a high quality metals portfolio, thus transforming BORN from a pure coking coal producer into a world class diversified natural resources producer."
After the transaction, Borneo together with PT Bakrie & Brothers Tbk and Long Haul Holdings -- companies controlled by the Bakrie Group -- would own an approximate 47.6 percent stake and an approximate 29.99 percent voting interest in Bumi Plc, according to the document seen by Reuters.
The deal is subject to approval of Borneo shareholders in a meeting on Dec. 15 -- a formality since the deal document states Tan's vehicle, PT Republik Energi & Metal, will put its 73 percent holding behind the agreement -- and certain other conditions, including regulatory approvals.
Bumi Resources' share price has been weighed down by investor concerns over high debt levels and transparency. Indonesia's stock exchange said last year it would fine three Bakrie firms, including the family's holding firm Bakrie & Bros, for failing to explain discrepancies in their financial reports.
The London-listing, a joint venture engineered by Rothschild, the billionaire scion of the European banking dynasty, through a complex reverse takeover, was meant to bring greater corporate governance and better access to capital.
But a sharp decline since June in the share price of Bumi Plc amid falling equity and commodity markets triggered a mandatory repayment clause on the one-year $1.35 billion loan that had been due to mature in March 2012.
(sourced Reuters)
Thursday, September 15, 2011
Race for resources - NMDC confirms bidding for 50pct stake in Legacy Iron Ore
Thursday, 15 Sep 2011
Press Trust of India reported that Indian state owned miner NMDC today said it has submitted a formal binding bid to acquire 50% stake in Australian exploration firm Legacy Iron Ore for an undisclosed amount.
Mr Rana Som chairman of NMDC told PTI over phone from Istanbul that “We have submitted a formal binding bid for acquiring 50% stake in Legacy, as was envisaged in the MoU inked with them and if Legacy's Board approves it, we will be taking stake in the Australian firm.”
He, however, declined to comment on the deal size by saying that it is still confidential".
However, according to industry sources, the deal size is in the range of AUD 32 million to AUD 40 million (INR 150 crore to INR 200 crore).
Legacy said in a filing to the Australian Securities Exchange yesterday that it has received a formal proposal from NMDC to form a strategic alliance. Trading of its shares on the ASX has been halted till tomorrow.
(Sourced from PTI)
Press Trust of India reported that Indian state owned miner NMDC today said it has submitted a formal binding bid to acquire 50% stake in Australian exploration firm Legacy Iron Ore for an undisclosed amount.
Mr Rana Som chairman of NMDC told PTI over phone from Istanbul that “We have submitted a formal binding bid for acquiring 50% stake in Legacy, as was envisaged in the MoU inked with them and if Legacy's Board approves it, we will be taking stake in the Australian firm.”
He, however, declined to comment on the deal size by saying that it is still confidential".
However, according to industry sources, the deal size is in the range of AUD 32 million to AUD 40 million (INR 150 crore to INR 200 crore).
Legacy said in a filing to the Australian Securities Exchange yesterday that it has received a formal proposal from NMDC to form a strategic alliance. Trading of its shares on the ASX has been halted till tomorrow.
(Sourced from PTI)
Sunday, September 11, 2011
POSCO to raise stake in Brazilian iron ore miner
September11, 2011
Korean newspaper the Korea Economic Daily reported Friday that South Korean steel giant POSCO plans to buy additional shares of Brazilian iron ore mining company Namisa following recent board approval.
According to the report, POSCO will buy an additional 2 to 3 percent in Namisa from fellow shareholders.
POSCO originally bought a 6.5 percent stake in Namisa for $505 million in 2008, when a group of six Asian steelmaking companies bought respective stakes in Namisa. Other shareholders in the iron ore miner include Japan's Nippon Steel Corp., Kobe Steel Ltd., JFE Steel Corporation, Sumitomo Metal Industries and Nisshin Steel Co. Combined with POSCO, the six steelmakers own a 40 percent stake in Namisa.
Tags: iron ore , raw mat , Brazil , Japan , Korea , Korea S. , Far East , South America , investments , M&A , POSCO , mining , JFE Steel , Nippon Steel , Kobe Steel , East Asia and Pacific
(sourced steelorbis)
Korean newspaper the Korea Economic Daily reported Friday that South Korean steel giant POSCO plans to buy additional shares of Brazilian iron ore mining company Namisa following recent board approval.
According to the report, POSCO will buy an additional 2 to 3 percent in Namisa from fellow shareholders.
POSCO originally bought a 6.5 percent stake in Namisa for $505 million in 2008, when a group of six Asian steelmaking companies bought respective stakes in Namisa. Other shareholders in the iron ore miner include Japan's Nippon Steel Corp., Kobe Steel Ltd., JFE Steel Corporation, Sumitomo Metal Industries and Nisshin Steel Co. Combined with POSCO, the six steelmakers own a 40 percent stake in Namisa.
Tags: iron ore , raw mat , Brazil , Japan , Korea , Korea S. , Far East , South America , investments , M&A , POSCO , mining , JFE Steel , Nippon Steel , Kobe Steel , East Asia and Pacific
(sourced steelorbis)
Zimbabwe may give mines more time on ownership plans
Sept11,2011
* Zimplats accounts for 10 percent of Implats' output
* Implats shares up two percent
HARARE (Reuters) - Zimbabwe may give foreign miners more time to submit plans to transfer majority stakes to local black investors, the state-run Herald newspaper said on Friday.
Firms such Zimplats , the local unit of South Africa's Impala Platinum have asked for an extension of the deadline to submit empowerment plans, the paper said.
"Our teams are now working with some mining companies that have asked for more time to work on their new proposals and we will keep the public updated on the developments," Empowerment Minister Saviour Kasukuwere told the Herald.
The paper said Zimplats was working on a proposal to submit by the end of November, two months past the original deadline to transfer majority stakes.
"It appears that the timeframe that Zimplats was given to amend its proposal was short and the company has now requested for about two months to work on another proposal," said the paper, which is widely seen as an official government mouthpiece.
"A new proposal would be submitted to government before the end of November. The new plan will have an element of the community share ownership trust," Zimplats deputy chairman Much Masunda was quoted as saying.
Implats' shares fell more than three percent on Thursday on reports the government was moving to revoke Zimplats' licence. The shares recouped about two percent on Friday morning, outpacing a 0.25 percent rise on the blue-chip top 40 index .
Zimplats' accounts for about 10 percent of Implats' annual group output of close to 1.8 million ounces of platinum.
(sourced Thomson Reuters)
* Zimplats accounts for 10 percent of Implats' output
* Implats shares up two percent
HARARE (Reuters) - Zimbabwe may give foreign miners more time to submit plans to transfer majority stakes to local black investors, the state-run Herald newspaper said on Friday.
Firms such Zimplats , the local unit of South Africa's Impala Platinum have asked for an extension of the deadline to submit empowerment plans, the paper said.
"Our teams are now working with some mining companies that have asked for more time to work on their new proposals and we will keep the public updated on the developments," Empowerment Minister Saviour Kasukuwere told the Herald.
The paper said Zimplats was working on a proposal to submit by the end of November, two months past the original deadline to transfer majority stakes.
"It appears that the timeframe that Zimplats was given to amend its proposal was short and the company has now requested for about two months to work on another proposal," said the paper, which is widely seen as an official government mouthpiece.
"A new proposal would be submitted to government before the end of November. The new plan will have an element of the community share ownership trust," Zimplats deputy chairman Much Masunda was quoted as saying.
Implats' shares fell more than three percent on Thursday on reports the government was moving to revoke Zimplats' licence. The shares recouped about two percent on Friday morning, outpacing a 0.25 percent rise on the blue-chip top 40 index .
Zimplats' accounts for about 10 percent of Implats' annual group output of close to 1.8 million ounces of platinum.
(sourced Thomson Reuters)
CSN bids for major stake in Usiminas
Sunday, Sept11, 2011
Companhia Siderurgica Nacional SA (CSN) continues to grow its stake in Usinas Siderurgicas de Minas Gerais SA (Usiminas), its flat-rolled steelmaking rival in Brazil.
On Thursday, Brazilian newspaper O Estado de Sao Paulo reported that CSN has made an offer to the other shareholders in Usiminas--which include Camargo Corraa, Votorantim and Nippon Steel--to acquire a 26 percent stake in Usiminas. CSN is bidding for Camargo Corraa's and Votorantim's shares in the company. Camargo Corraa and Votorantim own a combined 13 percent stake in Usiminas, while CSN owns 10.84 of Usiminas' voting shares after buying added Usiminas stock in late July. However, the reports have been confirmed by either CSN or Usiminas.
Based on the shareholders agreement, Nippon Steel, which holds a 27.8 percent stake in Usiminas has the first right to refuse CSN's bid.
Also according to Thursday's report in the newspaper, Nippon Steel has approached Gerdau SA about becoming a possible shareholder in Usiminas as well.
Tags: flats , Brazil , Japan , Far East , South America , investments , M&A , steelmaking , Gerdau , Nippon Steel , East Asia and Pacific
Companhia Siderurgica Nacional SA (CSN) continues to grow its stake in Usinas Siderurgicas de Minas Gerais SA (Usiminas), its flat-rolled steelmaking rival in Brazil.
On Thursday, Brazilian newspaper O Estado de Sao Paulo reported that CSN has made an offer to the other shareholders in Usiminas--which include Camargo Corraa, Votorantim and Nippon Steel--to acquire a 26 percent stake in Usiminas. CSN is bidding for Camargo Corraa's and Votorantim's shares in the company. Camargo Corraa and Votorantim own a combined 13 percent stake in Usiminas, while CSN owns 10.84 of Usiminas' voting shares after buying added Usiminas stock in late July. However, the reports have been confirmed by either CSN or Usiminas.
Based on the shareholders agreement, Nippon Steel, which holds a 27.8 percent stake in Usiminas has the first right to refuse CSN's bid.
Also according to Thursday's report in the newspaper, Nippon Steel has approached Gerdau SA about becoming a possible shareholder in Usiminas as well.
Tags: flats , Brazil , Japan , Far East , South America , investments , M&A , steelmaking , Gerdau , Nippon Steel , East Asia and Pacific
Thursday, September 1, 2011
Chinese firms take 15-pct stake in niobium producer CBMM
Thu Sep 1, 2011
SHANGHAI, Sept 1 (Reuters) - China's Citic Group has teamed up with stainless steel producers Taiyuan Iron and Steel and Baosteel to acquire a 15-percent stake in a Brazilian niobium producer for $1.95 billion, the official Xinhua news agency reported on Thursday.
Companhia Brasileira de Metalurgia e Mineracao (CBMM) is the world's largest niobium producer. The metal is mainly used to produce superalloys for high-tech sectors as well as to make stainless steel.
The deal will be completed on Thursday, Xinhua reported, without citing sources.
A consortium of four Japanese companies -- JFE Holdings , Nippon Steel , Sojitz Corp and government-funded Japan Oil, Gas & Metals National Corp -- as well as South Korea's National Pension Service and Posco , bought a combined 15 percent stake in CBMM for about $1.8 billion in March.
Monday, August 29, 2011
Australia's Tigers Realm Coal slides on debut
Mon Aug 29, 2011
MELBOURNE Aug 29 (Reuters) - Australian coal explorer Tigers Realm Coal had a choppy first day on the Australian bourse on Monday, rising 20 percent then falling as much as 13 percent below its issue price following a poorly timed float.
The company, with stakes in two coking coal projects in Russia and Colombia, raised A$37.5 million ($39.5 million)through its initial public offering.
It launched its offering just as markets plunged in early August, forcing the company to slash its initial target of A$200 million to A$37.5 million.
Tigers Realm Coal shares opened at A$0.505, traded as high as A$0.60 and last traded at A$0.46, 4 cents below its issue price, valuing the group at A$167 million. The broader market was up around 2 percent on Monday.
The funds will be used for drilling work at the Amaam project in far eastern Russia and Landazuri in Colombia.
Drilling to firm up resources at Amaam, the group's biggest project, is expected to run through early 2012, with Tigers Realm Coal aiming to have a feasibility study completed by late 2013.
Chief Executive Martin Grant said the company would look at a wide range of options for future funding, including selling equity stakes to mining companies, steel makers, or trading companies in return for offtake agreements.
Amaam would be well-positioned to supply hard coking coal into China and other Asian markets.
Grant was confident Amaam had an advantage versus coking coal mines being developed in Mongolia and Mozambique which could start producing at the same time.
"Mozambique and Mongolia will continue to be challenged for a long period," he told reporters.
Grant, a geologist, held senior posts in BHP Billiton's coal business, including BHP Billiton Mitsubishi Alliance, the world's top exporter of coking coal, before taking the reins at Tigers Realm Coal. He has also worked as an investment banker at UBS and JBWere.
Tigers Realm is 6.25 percent owned by Tigers Realm Minerals, founded by former chief of Oxiana, Owen Hegarty, after Oxiana merged with Zinifex to form OZ Minerals .
Credit Suisse was lead manager and underwriter for the offering, with co-lead manager Bell Potter Securities.
Saturday, August 27, 2011
Rio Tinto increases its stake in Ivanhoe Mines to 45pct
Saturday, 27 Aug 2011
Rio Tinto exercised its right to subscribe for and acquire common shares in Ivanhoe Mines Limited under its Subscription Right. As a result, Ivanhoe Mines will issue 27,896,570 million new shares to a wholly owned subsidiary of Rio Tinto, Rio Tinto International Holdings Limited increasing Rio Tinto's ownership in Ivanhoe Mines by 2.0% to a total of 358,158,442 common shares or 48.5%.
The price paid per share was CAD 18.98 and the total consideration for the exercise of this Subscription Right was CAD 529.5 million. The subscription was made in accordance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits. Under the terms of these agreements and subject to certain exceptions, Rio Tinto's current maximum permitted shareholding in Ivanhoe Mines is 49%.
The subscription was made in order to increase Rio Tinto's ownership of Ivanhoe in accordance with its contractual rights. Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe.
Today's subscription reinforces Rio Tinto's commitment to the Oyu Tolgoi project, which is a natural fit with its strategy of focusing on cost competitive, long life assets with significant growth potential. Together with Ivanhoe and the Government of Mongolia, Rio Tinto is determined to develop Oyu Tolgoi in a sustainable, mutually beneficial manner for the people of Mongolia.
Rio Tinto exercised its right to subscribe for and acquire common shares in Ivanhoe Mines Limited under its Subscription Right. As a result, Ivanhoe Mines will issue 27,896,570 million new shares to a wholly owned subsidiary of Rio Tinto, Rio Tinto International Holdings Limited increasing Rio Tinto's ownership in Ivanhoe Mines by 2.0% to a total of 358,158,442 common shares or 48.5%.
The price paid per share was CAD 18.98 and the total consideration for the exercise of this Subscription Right was CAD 529.5 million. The subscription was made in accordance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits. Under the terms of these agreements and subject to certain exceptions, Rio Tinto's current maximum permitted shareholding in Ivanhoe Mines is 49%.
The subscription was made in order to increase Rio Tinto's ownership of Ivanhoe in accordance with its contractual rights. Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe.
Today's subscription reinforces Rio Tinto's commitment to the Oyu Tolgoi project, which is a natural fit with its strategy of focusing on cost competitive, long life assets with significant growth potential. Together with Ivanhoe and the Government of Mongolia, Rio Tinto is determined to develop Oyu Tolgoi in a sustainable, mutually beneficial manner for the people of Mongolia.
Friday, August 26, 2011
US coal giant says taxes make Australian investment less attractive
Fri, August 26, 2011
By Matt Chambers, The Australian
Peabody Energy says the government is making it less attractive to invest in Australia because of proposed taxes.
The US coal giant, jointly bidding $4.7 billion for Macarthur Coal with the world's biggest steel company ArcelorMittal, also says there is a heightened sovereign risk.
Speaking in Sydney yesterday, senior vice-president of investor relations, Vic Svec, said despite Peabody's continued investment in Australia, there was no question that the nation's relative advantage in attracting foreign investment was shrinking under the current government.
"It's really only in the last year you've heard sovereign risk being associated with Australia, and we don't like that," he said.
Peabody is Australia's fifth-biggest coal producer, but it will jump to the third-biggest if it is successful in the joint $15.50-a-share cash bid for Macarthur.
"We want Australia to be more welcoming to capital, as opposed to less welcoming, to ensure we don't take a meat cleaver to the milk cow," Mr Svec said.
He said Australia was "absolutely" becoming less welcoming to capital through the proposed mining and carbon taxes.
Peabody, the world's biggest non-government coal company, sold 246 million tonnes of coal last year - all from the US, apart from 27 million tonnes in Australia.
Despite this, its Australian operations accounted for 60 per cent of the company's earnings because most of the US coal is contracted domestically for much lower prices than are fetched on export markets.
Mr Svec said he had not planned for any formal meetings with Macarthur during his visit, but the company continued to engage with its target and hoped that an agreement could be reached.
"Their mantra of taking no action seems to be going on for a pretty long time," he said.
When Macarthur released its full-year profit on Wednesday, the company said it remained in conversations with other potential suitors but that nothing had eventuated and that shareholders should take no action on the Peabody bid.
A recommendation from the Macarthur board is expected before the end of the month.
Mr Svec said Macarthur's inability to hit production targets in four of the past five years was indicative of either poor forecasting, poor operations, or both.
Peabody had begun to receive some acceptances for its offer, Mr Svec said.
But it is only a trickle at this stage and has not strengthened the Peabody/Arcelor stake in Macarthur more than one percentage point beyond the 16 per cent it was at when the bid was lobbed a month ago.
By Matt Chambers, The Australian
Peabody Energy says the government is making it less attractive to invest in Australia because of proposed taxes.
The US coal giant, jointly bidding $4.7 billion for Macarthur Coal with the world's biggest steel company ArcelorMittal, also says there is a heightened sovereign risk.
Speaking in Sydney yesterday, senior vice-president of investor relations, Vic Svec, said despite Peabody's continued investment in Australia, there was no question that the nation's relative advantage in attracting foreign investment was shrinking under the current government.
"It's really only in the last year you've heard sovereign risk being associated with Australia, and we don't like that," he said.
Peabody is Australia's fifth-biggest coal producer, but it will jump to the third-biggest if it is successful in the joint $15.50-a-share cash bid for Macarthur.
"We want Australia to be more welcoming to capital, as opposed to less welcoming, to ensure we don't take a meat cleaver to the milk cow," Mr Svec said.
He said Australia was "absolutely" becoming less welcoming to capital through the proposed mining and carbon taxes.
Peabody, the world's biggest non-government coal company, sold 246 million tonnes of coal last year - all from the US, apart from 27 million tonnes in Australia.
Despite this, its Australian operations accounted for 60 per cent of the company's earnings because most of the US coal is contracted domestically for much lower prices than are fetched on export markets.
Mr Svec said he had not planned for any formal meetings with Macarthur during his visit, but the company continued to engage with its target and hoped that an agreement could be reached.
"Their mantra of taking no action seems to be going on for a pretty long time," he said.
When Macarthur released its full-year profit on Wednesday, the company said it remained in conversations with other potential suitors but that nothing had eventuated and that shareholders should take no action on the Peabody bid.
A recommendation from the Macarthur board is expected before the end of the month.
Mr Svec said Macarthur's inability to hit production targets in four of the past five years was indicative of either poor forecasting, poor operations, or both.
Peabody had begun to receive some acceptances for its offer, Mr Svec said.
But it is only a trickle at this stage and has not strengthened the Peabody/Arcelor stake in Macarthur more than one percentage point beyond the 16 per cent it was at when the bid was lobbed a month ago.
Tuesday, August 23, 2011
Zimbabwe government gives foreign companies 14 day deadline
Tuesday, 23 Aug 2011
Reuters reported that Zimbabwe’s government has given foreign companies including miners and banks a 14 day ultimatum to submit plans on how they propose to transfer majority stakes to local owners or risk losing permits.
However, immediately thereafter the country’s central bank governor Mr Gideon Gono launched a scathing attack on the minister responsible for the indigenization policy saying the threats could irreparably harm the nerve centre of the recovering economy.
Before a new unity government in 2009 Zimbabwe economy had shrank by as much as half over the preceding decade amid hyperinflation, property seizures and civil unrest. The country is the number two platinum producer in the world and rich in gold and diamonds.
Mr Gono’s comments is a clear sign of the divisions that still exists within the unity government between the opposition MDC and President Robert Mugabe who has been leader of the country for more than 30 years and championed the legislation which was enacted in 2008.
Under Zimbabwe’s indigenization policy mining companies were granted until the beginning of June to submit proposals about transferring majority ownership but the government then rejected 175 of these plans from mines because they had proposed selling only a 25% stake and making social responsibility investments to obtain credits for the remainder.
The targeted firms include platinum miners Zimplats, which is majority owned by Impala Platinum (Implats), and Mimosa, an Implats' 50:50 joint venture with Aquarius Platinum.
Others include Rio Tinto's Murowa diamond mine, British American Tobacco and local units of British banks, Standard Chartered and Barclays.
Indigenisation and Empowerment Minister Saviour Kasukuwere wrote to the companies on July 28, informing them they had failed to provide acceptable details of how they propose to transfer 51 percent shareholdings to local people within the five years stipulated by law, the state controlled Herald newspaper said.
The newspaper reported that the companies risk losing their operating licences if they do not submit plans on transfer of ownership that are deemed acceptable.
(sourced from Reuters)
Reuters reported that Zimbabwe’s government has given foreign companies including miners and banks a 14 day ultimatum to submit plans on how they propose to transfer majority stakes to local owners or risk losing permits.
However, immediately thereafter the country’s central bank governor Mr Gideon Gono launched a scathing attack on the minister responsible for the indigenization policy saying the threats could irreparably harm the nerve centre of the recovering economy.
Before a new unity government in 2009 Zimbabwe economy had shrank by as much as half over the preceding decade amid hyperinflation, property seizures and civil unrest. The country is the number two platinum producer in the world and rich in gold and diamonds.
Mr Gono’s comments is a clear sign of the divisions that still exists within the unity government between the opposition MDC and President Robert Mugabe who has been leader of the country for more than 30 years and championed the legislation which was enacted in 2008.
Under Zimbabwe’s indigenization policy mining companies were granted until the beginning of June to submit proposals about transferring majority ownership but the government then rejected 175 of these plans from mines because they had proposed selling only a 25% stake and making social responsibility investments to obtain credits for the remainder.
The targeted firms include platinum miners Zimplats, which is majority owned by Impala Platinum (Implats), and Mimosa, an Implats' 50:50 joint venture with Aquarius Platinum.
Others include Rio Tinto's Murowa diamond mine, British American Tobacco and local units of British banks, Standard Chartered and Barclays.
Indigenisation and Empowerment Minister Saviour Kasukuwere wrote to the companies on July 28, informing them they had failed to provide acceptable details of how they propose to transfer 51 percent shareholdings to local people within the five years stipulated by law, the state controlled Herald newspaper said.
The newspaper reported that the companies risk losing their operating licences if they do not submit plans on transfer of ownership that are deemed acceptable.
(sourced from Reuters)
Monday, August 22, 2011
Japan JFE says aims to boost ties with India's JSW
Mon Aug 22, 2011
TOKYO Aug 22 (Reuters) - JFE Steel Corp , the world's fifth-biggest steelmaker, said on Monday it would strengthen its ties with India's JSW Steel Ltd by either boosting its stake in the company or increasing its presence on the smaller firm's board.
Under so-called 'equity-method' accounting rules, JFE could report part of the Indian company's net profit in its consolidated results if it holds more than 15 percent of its stock or has representation on its board of directors.
"We hope to make JSW an equity-method company of our group," Eiji Hayashida, president of JFE Steel, told the Nikkei business daily in an interview on Sunday.
"I have told (managing director Sajjan) Jindal about our intentions and we have had no negative response so far."
JFE last year spent about $1 billion acquiring a 14.9 percent stake in JSW, India's No.3 steelmaker, in an attempt to gain a foothold in the fast-growing Indian market.
The stake, just shy of the level that would have triggered a mandatory public offering at that time, was JFE's first major capital investment in a foreign peer.
Hayashida also said in the Nikkei that JFE planed to join JSW's project to build a new integrated steel mill in India and that it was in talks with management on its ownership ratio.
"Our ownership will be below 50 percent," he said, citing potential difficulties for a foreign company in managing large numbers of local workers.
Saturday, August 20, 2011
Brazil's CSN ups stake in rival steelmaker Usiminas
Aug19, 2011 |By Reuters
SAO PAULO (Reuters) - Brazil's CSN (CSNA3.SA: Quote)(SID.N: Quote) boosted its stake in Usiminas (USIM3.SA: Quote)(USIM5.SA: Quote) in a further step toward changing the rival steelmaker's ownership structure.
Sao Paulo-based CSN raised its holdings of Usiminas' common stock to 11.29 percent, and to 15.15 percent of preferred stock, the company said in a regulatory filing late on Friday.
SAO PAULO (Reuters) - Brazil's CSN (CSNA3.SA: Quote)(SID.N: Quote) boosted its stake in Usiminas (USIM3.SA: Quote)(USIM5.SA: Quote) in a further step toward changing the rival steelmaker's ownership structure.
Sao Paulo-based CSN raised its holdings of Usiminas' common stock to 11.29 percent, and to 15.15 percent of preferred stock, the company said in a regulatory filing late on Friday.
Wednesday, August 17, 2011
Russia's Renova in talks to buy Ukrainian steel assets-paper
Wed Aug 17, 2011
MOSCOW Aug 17 (Reuters) - Renova, the investment holding of Russia's billionaire Viktor Vekselberg, may buy steel assets from Ukraine's billionaire Viktor Pinchuk in a deal potentially worth $1.5 billion, the daily Kommersant reported on Wednesday.
Pinchuk investment's company EastOne Group is selling a 25 percent stake in a series of its steel assets, the newspaper reported, citing unnamed sources close to the negotiations.
(sourced Reuters)
MOSCOW Aug 17 (Reuters) - Renova, the investment holding of Russia's billionaire Viktor Vekselberg, may buy steel assets from Ukraine's billionaire Viktor Pinchuk in a deal potentially worth $1.5 billion, the daily Kommersant reported on Wednesday.
Pinchuk investment's company EastOne Group is selling a 25 percent stake in a series of its steel assets, the newspaper reported, citing unnamed sources close to the negotiations.
(sourced Reuters)
Subscribe to:
Posts (Atom)
Posts
