Mining company Rio Tinto

Wednesday, 03 March 2010 21:19

A New South Wales Supreme Court judge yesterday found two former directors of unlisted company Resource Equities guilty of “numerous breaches of their statutory and general law obligations.” The pair were ordered to pay $2.3 million in compensation. Justice Robert McDougall also referred his judgement to the Australian Securities and Investments Commission, which is examining the ruling.

Hong Kong  investment group Wah Nam International Holdings this week increased its stake in West Australian iron ore company Brockman Resources to 19.9 percent, the maximum allowable holding before a formal takeover bid must be launched. Analysts say it is unclear whether Wah Nam will seek control of the company. Last month Brockman announced a 133 percent increase in resources at its flagship Marillana project.

Mining company Rio Tinto yesterday said it had secured a new exploration permit for its US$2 billion Sulawesi laterite nickel project in Indonesia. The permit has been granted under new mining laws which last year halted development at the site. Analysts say Rio is likely to consider selling the project after further exploratory studies of the site, rather than processing the nickel itself.

The Australian Securities Exchange has questioned agricultural chemicals company Nufarm over the timing of this week’s announcement that the company expects to report a $40 million loss for the first half. Nufarm made the announcement on Tuesday, immediately before asking shareholders to vote on the proposed sale of a 20 percent stake in the company to Japan’s Sumitomo Chemical.

Federal Opposition Leader Tony Abbott is facing pressure from the West Australian Liberal Party to introduce a policy to return 25 percent of the Federal Government’s petroleum resource rent tax to the state. WA Mines and Petroleum Minister Norman Moore yesterday said the funds are required to build infrastructure to support the oil and gas sector in the state. Liberals from other states are expected to strongly fight the proposal.

Queensland  sugar company Maryborough Sugar Factory yesterday announced changes to its takeover offer for rival Tully Sugar. Maryborough originally offered an all-scrip bid almost seven months ago, but is now offering $6.75 a share plus 10 Maryborough shares, valuing Tully at $81.1 million. A successful bid would create Australia’s fourth-largest sugar company.

Private equity firm Pacific Equity Partners is considering floating or selling cinema group Hoyts, and this week discussed sale options with a number of investment banks. The possible sale has been prompted by recent strong earnings growth in the cinema sector. Hoyts’ executive chairman David Kirk yesterday said that no decision has been made, however, a “detailed examination of our options” is underway.

Hearing implant company Cochlear is reportedly working with private equity groups Hellman & Friedman and Kohlberg Kravis Roberts on a possible bid for the hearing aid business of Germany’s Siemens. Investors have expressed concerns about acquiring the low-margin business, which could cost more than $3.1 billion. However, analysts say Cochlear could benefit from the acquisition of Siemens’ technology, and gain a source of referrals to its implant business.

Miclyn Express Offshore, which supplies charter vessels to the offshore oil and gas industry, yesterday lodged a prospectus for listing on the Australian Securities Exchange, with hopes of raising up to $365 million. Despite recent equity market volatility, chief executive Diederik de Boer yesterday said of the proposal’s timing, “I don’t think it’s a particularly bad time at the moment.”  Miclyn hopes to list on April 6.