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Chinese giant Baosteel and Australian coal haulage company Aurizon Holdings Limited (ASX:AZJ) have launched a $1.4 billion takeover bid for Aquila Resources Limited (ASX:AQA).
Baosteel and Aurizon are offering the Australian iron ore developer $3.40 cash per share, representing a 39 percent premium to the company’s last closing price.
If the deal goes through Aurizon will take 15 per cent in Aquila while Baosteel’s interest would be boosted to majority ownership at 85 per cent.
Aquila has formed an independent board sub-committee to consider and evaluate the bid and appointed Goldman Sachs as financial adviser.
Aquila Resources reported a net loss of 590,000 in the first half of the 2014 financial year.
