Following its announcement on 15 September 2011 of the agreement for the sale of its trading, fabrication and other businesses, Minmetals Resources Limited (MMR) (HKSE: 1208) today dispatched a circular to its shareholders outlining details of the agreement.
KEY POINTS
- Minmetals Resources Limited announced its intention to divest its trading, fabrication and other businesses in March 2011 and the agreement with China Minmetals Nonferrous Co., Ltd for the sale on 15 September 2011.
- The sale assets include MMR’s interests in Minmetals Aluminium, North China Aluminium, Yingkou Orienmet and Changzhou Jinyuan.
- The total agreed sale price for the assets is US$726.8 million.
- Proceeds from the sale will be used to strengthen the balance sheet and fund future growth.
- MMR will seek approval from its independent shareholders at an extraordinary general meeting on 28 October 2011.
- The Independent Board Committee, taking into account advice from Somerley Limited, the independent financial advisers, recommend that independent shareholders vote in favour of the sale agreement.
“This announcement takes MMR one more step closer to completing its transformation into a diversified upstream base metals company – poised for growth,” said Mr Andrew Michelmore, CEO and Executive Director of MMR.
“The sale of the company’s alumina and aluminium trading businesses along with the aluminium and copper fabrication businesses is fully aligned to our stated strategy. It will enable MMR to focus on its upstream, high margin copper and zinc mines and future growth potential in this field.”
Proceeds from the sale of the non-core assets will be used to further strengthen MMR’s balance sheet and drive future growth. MMR currently intends to apply the net proceeds from the sale of the non-core assets to fund the repayment of debt incurred for the purposes of the proposed takeover of Anvil Mining Limited (Anvil), announced separately on 30th September, however the proposed takeover of Anvil is not conditional on these funds.
The circular includes a letter from Somerley Limited, the independent financial advisers, which advises that all asset sales are considered to be on normal commercial terms which are fair and reasonable and the Independent Board Committee recommends that independent shareholders vote in favour of the sale agreement at the extraordinary general meeting.
The extraordinary general meeting to approve the sale agreement will be held at 10.30am on Friday 28 October 2011, Studio 1, 7/F, W Hong Kong Hotel, 1 Austin Road West, Kowloon, Hong Kong.