[ET Net News Agency, 14 March 2017] Wang Tai Holdings (01400) said it agreed to acquire
about at least 53% equity interest in Iron Mining International (Mongolia) Limited at
HK$6.36 billion.
Wang Tai Holdings is not obliged to complete the acquisition unless it can acquire not
less than 90% stake of the target company. The consideration for acquiring 90% or 100%
stake in the target company will amount to HK$10.8 billion or HK$12 billion respectively.
The consideration will be satisfied by the allotment and issue of consideration shares
at the issue price of HK$0.13 per share, representing a discount of about 72.92% to the
closing price of HK$0.48.
The target company is primarily engaged in the exploration, mining, processing, sales
and marketing of iron ore in Mongolia. The target group owns iron ore mines at the Eruu
Gol Mining Area in Mongolia, namely the Central Section, the East Section and the West
Section, each of which contains significant high grade magnetite deposits of iron ore.
Wang Tai Holdings also proposes to place, on a best efforts basis, up to 8,000 million
new shares at HK$0.13 per share, representing around 8.64% of the enlarged issued share
capital of Wang Tai Holdings.
The aggregate gross proceeds from the placing will be HK$1,040 million. Wang Tai
Holdings intends to utilise the proceeds for business development of the target group
and/or repayment of existing debts of the target group and/or its related entities.
Trading in shares of Wang Tai Holdings will be resumed this morning. (HL)