Today in Hong Kong the independent shareholders of Minmetals Resources Limited (MMR), a subsidiary of China Minmetals Non-Ferrous Co. Ltd (CMN) voted on the proposal to acquire MMG from CMN for $US1.846 billion.
MMR is a metals trading business listed on the Hong Kong Stock Exchange, which is principally engaged in the manufacturing and sales of alumina, aluminium products, copper productions and plica tubes.
At the meeting shareholders endorsed a resolution to enable MMR to acquire MMG for $US1.846 billion and raise up to US$1.6 billion in new capital between now and 31 July 2011.
MMG’s CEO, Andrew Michelmore (who will become CEO of MMR upon completion of the acquisition) is very positive about the decision by MMR’s shareholders.
“Today’s shareholder vote is very important in the creation of the listed, international, diversified upstream base metals company that we have aspired to since the formation of MMG some 18 months ago,” Mr Michelmore said.
“The combination of MMR and MMG will create a publicly-listed, Chinese-connected and Australian headquartered resources business,” Mr Michelmore said.
The MMR Extraordinary General Meeting follows the agreement signed in October between CMN and MMR to acquire MMG. Upon completion of the transaction, Andrew Michelmore and MMG’s Chief Financial Officer David Lamont will be appointed to the MMR Board.
MMR’s acquisition of MMG is expected to be complete before the end of the year.
For further information please view the MMR release to the Hong Kong Stock Exchange and the shareholder presentation.