CITIC to bid for bigger stake in Australian miner Macarthur
CITIC Group, parent of China’s largest brokerage CITIC Securities, has turned down initial approaches by global mining companies which interested in bidding for its stake in Australian miner Macarthur Coal and is considering expanding its stake through buying into company founder’s holding worth about US$830 million, sources reported.
CITIC, firstly launched its investment in Macarthur in 1997, now owns 19.9% stakes in the coal miner, while Founder Ken Talbot takes up 24% which 2 weeks ago was reported in talks to sell.
BHP Billiton, Rio Tinto and Brazil’s Vale were not only interested in Talbot’s stake in Macarthur but also in CITIC’s, the report said.
Meanwhile, Australian mining magnate Nathan Tinkler who holds 10% in Macarthur said he would consider selling his as well if Talbot did.
Under Australian law, a buyer needs to launch a general offer when its stake rises above 20%. To date, neither CITIC nor its Australian subsidiary could be reached for comment.
Macarthur mainly sells pulverized coal used in steelmaking.
Mainland firms including Aluminum Corp of China<601600><2600> and Sinosteel have bought stakes in Australian mining firms in recent months. The increasing trend has triggered attention from Australian government which may tighten its scrutiny of such deals, according to the report.
Tags: brokers, CITIC, investment