Sinosteel, one of the major state-owned steel traders in China, has gained control of Australian iron ore miner Midwest, acquiring a 50.97% stake in the company, according to a notice announced by the Australian Stock Exchange (ASX) on July 11th. Sinosteel made a bid of A$1.36 billion (USD1.3 billion) or A$ 6.38 per share for the company. Sinosteel will continue to acquire the remaining minority share of the company, and has appointed three representatives, Cheng Sijun, Wu Hongbin, and Ian McCubbin, to the board of directors.. On July 14th, Sinosteel increased its share to 52.52%, and according to Australian laws, if Sinosteel obtains over 90% of Midwest, Sinosteel will have to make mandatory takeover on the remaining shares.
However, Sinosteel still faces difficulties in obtaining full ownership of Midwest, as Harbinger Capital Partners increased its Midwest share to 12.53%, based on its statement on July 15th. It indicates that Harbinger Capital Partners has no plan to accept cash offer of A$ 6.38 per share from Sinosteel.