Successive decline in takeover target's stock price, Sichuan private enterprises O'Hanlon (Group) Co., Ltd. (hereinafter referred to "O'Hanlon Group") ten billion acquisition of Australian listed companies Saunders Resources Ltd. (Sundance Resources Ltd., trading under the code SDL.AX referred to as "Sanders") plans to variables. Sanders is an iron ore exploration and development providers.
The foreign media yesterday quoted sources as saying that the O'Hanlon Group has to offer Sanders down by 30 percent to 1.2 billion Australian dollars (1.27 billion U.S. dollars), while the previous offer of up to 1.7 billion Australian dollars (U.S. $ 10.5 billion yuan).
Although the price of the purchase price has fallen sharply, but $ 1.2 billion offer is equivalent to $ 0.40 per share, and still Bisangdesi 19.4% the highest bid in the final closing on July 31. O'Hanlon Group is still Sanders adjusted offer to negotiate.
For the price behavior of the O'Hanlon Group's Propaganda Department, a person told First Financial Daily ", there is no relevant information can be released.
Prior to the August 2, Saunders has been suspended from trading, the company said O'Hanlon O'Hanlon Group is working with the proposed acquisition of the mining industry consultation a "reasonable purchase price. Outside analysis, which suggests that the purchase price may be adjusted downwards. Make this request, the distance of the two companies had negotiated A $ 0.57 per share purchase price slid more than 40%.
On March 18 last year, O'Hanlon announced the acquisition of Sanders shares Sanders resources of the single largest shareholder, with 18.6% of the shares, and on July 15 in the same year, launched a wholly-owned tender offer, the per share purchase price 0.5 Australian dollars. On September 30 last year, the two sides reached a wholly-owned acquisition agreement, the final purchase price to upgrade to A $ 0.57 per share, the acquisition of the total amount of approximately $ 1.7 billion.
After the acquisition agreement was signed in September last year, have won the approval of the Australian foreign investment regulators Board (FIRB) and the National Development and Reform Commission. But since last September, the international price of iron ore has also been a substantial decline in iron ore prices below the $ 130 / t mark integer from about September last year, up to $ 175 / ton, has dropped to $ 120 / ton, the price fell nearly 30 percent.
International iron ore prices have fallen sharply, mainly due to the Chinese steel industry is in trouble. According to the statistics of the China Steel Industry Association, the member steel companies profit margin in the first half of this year from 3.06% in the same period last year, down only 0.13%. Upstream of the steel industry by the extrusion of iron ore monopoly, downstream extrusion by the end-user difficulties, after continuing losses, the domestic steel mills have cut production. The cut is conductive to the upstream, to further suppress the price of iron ore.
Accompanied by the downturn of the international economic situation and the decline of the price of iron ore, Sanders shares fell sharply, which makes the O'Hanlon Group had to re-evaluate the value of the iron ore market outlook, as well as Sanders.
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