Agreed Merger with Australian Bulk Minerals
On 25 September 2008, Grange Resources Limited (Grange) announced a merger with Australian Bulk Minerals (ABM) to create Asia’s leading magnetite iron ore pellet producer. ABM, located in North West Tasmania, is Australia’s only pellet exporter, producing 2.3mtpa of blast furnace grade pellets for delivery to BlueScope and other Chinese customers. The offer was subject to a number of conditions, including Chinese Government and Grange shareholder approvals, which were both received in December 2008.
As part of Azure’s ongoing role as corporate adviser to Grange, Azure carried out detailed analysis of the transaction and Grange’s other options, led negotiations with the Chinese consortium of owners of ABM, carried out the valuations and deal structuring and managed all aspects of the transaction to completion.
Grange issued 380 million shares, or 76.7% of the merged entity, as consideration for 100% of ABM. ABM was majority owned by the Jiangsu Shagang Group, the largest privately owned steel mill in China. The merger completed on 2 January 2009.