11 Aug 2009 12:23

CREC subsidiary plans takeover of RMA

Shanghai. August 11. INTERFAX-CHINA - China Railway Engineering Corp. Resources (Aust) Pty. Ltd. (CREC Resources), a wholly-owned subsidiary of China Railway and Engineering Corp. (CREC), announced on Aug. 10 that it has offered to acquire 80 percent of the remaining shares in Australian mineral explorer RMA Energy Ltd.

According to CREC Resources' offer, the company plans to acquire four out of every five remaining RMA shares that are not currently held by CREC Resources at a per-share price of AUD 0.065 ($0.054). CREC Resources already owns an 11.2 percent stake in RMA, which is based in the state of Queensland and conducts exploration of uranium, tin, coal and base metals resources.

The offer is subject to various conditions including approvals from Australia's Foreign Investment Review Board and Chinese authorities.

The company said that further detailed information regarding the offer will be included in the bidder's statement due in the next three to five weeks. RMA's board said on Aug. 10 that it is not in a position to provide a recommendation to shareholders until it receives the formal bidder's statement.

Patersons Securities Ltd. is the corporate adviser and Allens Arthur Robinson is the legal adviser to CREC Resources for the offer.

In February, RMA completed a AUD 1.8 million ($1.5 million) share placement deal with CREC Resources.

CREC, a state-run construction and engineering company, has a leading position in China's construction market and participates in many large-scale infrastructure projects overseas in Southeast Asia and Africa.