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Corrs advises on China Metallurgical IPO
Deal summary: Corrs has advised China Metallurgical Co Ltd on the Australian aspects of the world's second largest initial public offering (IPO) of 2009. The Shanghai Stock Exchange float was…
Lawyers Weekly
Deal summary:
The Shanghai Stock Exchange float was timed to coincide with a simultaneous issue of up to 2.61 billion shares on the Hong Kong Stock Exchange, with proceeds from the combined IPO totalling $US5.13 billion ($5.7 billion). The IPO was more than 200 times oversubscribed.
MCC will use the proceeds to fund mining rights in Afghanistan, Argentina and Pakistan, and iron and steel projects in Australia, India, Vietnam and Mongolia, as well as to repay bank borrowings and supplement its working capital.
Commentary:
Corrs partner and Chair of Corrs Energy and Resources Division, Adam Handley, said: "We congratulate MCC on the success of the IPO. MCC has demonstrated its strong commitment to the development of the Australian resources sector in recent years. The IPO opens up additional opportunities for MCC to pursue its Australian and broader international strategy and we are delighted to have been able to play a role in that."
Company info:
China Metallurgical Co Ltd is a subsidiary of China Metallurgical Group Corp (MCC).
Corrs Chambers Westgarth has advised MCC on several of its investments in Australia including: MCC's $400 million acquisition and $4 billion development of the Cape Lambert magnetite project in Western Australia; the acquisition of its equity stake and negotiation and implementation of its major EPC contract on the Cape Preston magnetite project in Western Australia; and a range of other significant matters.
Corrs has recently advised on a series of transactions for major private and public Chinese institutions. These include: Baosteel's strategic alliance with ASX-listed Aquila Resources Limited; Yanzhou Coal's proposed $3.3 billion takeover of ASX-listed Felix Resources; and Creat Group's strategic alliance with ASX-listed Galaxy Resources.
