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January 24, 2008 |
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ZINIFEX LTD: Revises Allegiance Mining Offer to AU$1 Per Share Zinifex Ltd. simplified its AU$775 million (U$675 million) offer for Allegiance Mining NL, Bloomberg reports. According to Reuters, citing a Zinifex statement with the Australian Stock Exchange, the company simplified its bid for Allegiance to a flat AU$1 per share. As stated in previous press reports, Zinifex's initial offer provided two different prices -- AU$0.9 per share or AU$1 per share -- with the higher offer set on the condition that Zinifex could successfully buy more than 30% shares of Allegiance or that the Allegiance board suggest shareholders to accept the acquisition plan. The Troubled Company Reporter-Asia Pacific reported on Jan. 21 that Allegiance is trading above Zinifex's offer price. Reuters notes that Allegiance's board has already rejected the bid, saying it undervalued the company's growth prospects. Zinifex, as widely reported by the media, wants control of Allegiance's Avebury nickel mine in Tasmania, which has a AU$3-billion supply agreement with China's Jinchuan Group Ltd. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/ -- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' Long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). The Outlook is Stable. |
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