Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 24 November 2011, 15:00 HKT/SGT
Share:
    

Source: Mitsubishi Corporation
Mitsubishi Development Pty to Acquire Murchison's Interests in Crosslands and Oakajee Port and Rail

TOKYO, Nov 24, 2011 - (ACN Newswire) - Mitsubishi Corporation (TSE 8058; LSE MBC, "Mitsubishi") announces that its wholly owned subsidiary, Mitsubishi Development Pty Ltd ("MDP") and Murchison Metals Ltd ("Murchison") have executed a Share and Asset Purchase Agreement for the acquisition of Murchison's interests in Crosslands Resources Ltd ("Crosslands"), which is the owner of the Jack Hills iron ore deposit, and in the associated rail and port infrastructure project in the Mid West region of Western Australia ("Oakajee Port and Rail" or "OPR") (together with Crosslands, the "Projects") for cash consideration of A$325 million (the "Transaction").

MDP and Murchison are each 50% shareholders in Crosslands and each has an effective 50% economic interest in OPR.

Highlights of the Transaction include:

-- MDP to acquire Murchison's interests in Crosslands and Oakajee Port and Rail for cash consideration of A$325 million
-- Transaction paves the way for near term development of the Projects and the broader Mid West region
-- Transaction has the support of the Murchison Board
-- Transaction demonstrates MDP's ongoing confidence in the Mid West region

Details of Transaction/Schedule

MDP and Murchison have agreed that MDP will, subject to satisfaction of certain conditions precedent, acquire all of Murchison's interests in the Projects for cash consideration of A$325 million. Completion of the Transaction will remove MDP's obligation to pay a residual contribution to Crosslands due under the existing arrangements with Murchison made in June 2007.

The acquisition of Murchison's interests in the Projects will require approval by ordinary resolution of Murchison's shareholders at an Extraordinary General Meeting. It is currently expected that the Extraordinary General Meeting will be held by 15 February 2012, with completion of the Transaction expected by 31 March 2012.

Impact on Mitsubishi's consolidated earnings

The Transaction is not expected to have a material impact on Mitsubishi's consolidated earnings for the current period.

Key Benefits/Rationale

The Transaction paves the way toward the construction and operation stages of the Projects and in doing so, removes uncertainty for the current employees and contractors of Crosslands and OPR. Following completion of the Transaction, MDP will support Crosslands and OPR in recommencing key activities, including finalisation of feasibility studies and obtaining necessary approvals for the Projects.

When appropriate and in due course, MDP intends to introduce a suitably capitalised partner(s) or investor(s) to take up the interests acquired through the Transaction. The introduction of such partner(s) will assist funding of the Projects and re-engagement with OPR Foundation Customers.

Conditions to the Transaction

MDP recognises that time is of the essence to ensure Project development can continue smoothly. As such, the agreed Transaction has limited conditions, including:
-- No material adverse change in the value of OPR and Crosslands as a result of intentional or reckless actions by Murchison;
-- Murchison shareholder approval;
-- Novation of key contracts relating to the Oakajee Port and Rail project (including the existing State Development Agreement with the Western Australian Government);
-- Obtaining Foreign Investment Review Board ("FIRB") approval;
-- Obtaining all other regulatory approvals;
-- Settlement of the current outstanding legal claim; and
-- Release of all encumbrances over the shares and assets to be acquired.

Advisers

Mitsubishi is being advised by Macquarie Capital and Mallesons Stephen Jaques.

For full details, please see: www.mitsubishicorp.com/jp/en/pr/archive/2011/html/0000013480.html


Contact:
Mitsubishi Corporation
Telephone: +81-3-3210-2171
Facsimile: +81-3-5252-7705




Topic: Joint Venture
Sectors: Metals & Mining, Daily Finance
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2021 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.


Mitsubishi Corporation Links

http://www.mitsubishicorp.com

https://ph.linkedin.com/company/mitsubishi-corporation

Mitsubishi Corporation
Jan 19, 2021 09:25 HKT/SGT
Mitsubishi Corporation: Commercial Operations Commence at Methanol / Dimethyl Ether Plant in Trinidad and Tobago
Dec 24, 2020 16:01 HKT/SGT
Vietnam Pilot Project Utilizing TradeWaltz Platform Adopted Under Government's Supply-Chain Diversification Scheme
Dec 8, 2020 15:01 HKT/SGT
MC Signs Rolling Stock Contracts with Myanma Railways
Nov 24, 2020 13:15 HKT/SGT
Mitsubishi Corporation Signs Contract with Egyptian Government for Phase 1 of Cairo Metro Line 4
Oct 30, 2020 23:10 HKT/SGT
Hitachi Rail and Mitsubishi Corp to Deliver Metro de Panama Line 3 worth JPY 92.0 Billion
Oct 28, 2020 09:30 HKT/SGT
Trials of Jointly Developed Compact LNG Filling System to Commence in Hokkaido
Oct 27, 2020 11:25 HKT/SGT
Mitsubishi Corporation: Cross-Industry Investment by Seven Enterprises in New TradeWaltz Platform
Oct 1, 2020 09:09 HKT/SGT
MC Commences Feasibility Study on Biometric Authentication Platform in Turkey
Sept 23, 2020 15:00 HKT/SGT
Mitsubishi Corporation: Use of CO2 in Concrete / Partnership with Blue Planet Systems Corporation
Sept 15, 2020 08:41 HKT/SGT
Mitsubishi Corporation and Surbana Jurong Joint Venture to Form Partnership with SinarMas Land to Advance Smart, Sustainable Transit-Oriented Developments in Indonesia
More news >>
 News Alerts
Copyright © 2021 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6859 8575

Connect With us: