Brockman Resources, an up and coming Australian iron ore producer, has received a takeover bid offer from its main shareholder, Wah Nam International Ltd. The Hong Kong based company currently owns 23% of Brockman Resources through a subsidiary. The Pilbara miner has been valued at $929.6 million by the Chinese company.
Wah Nam International Ltd has also launched a takeover bid for FerrAus which is also hoping to operate in the Pilbara region. The Chinese mining resources company owns 19.6% of FerrAus as well. It has offered six Wah Nam shares for one of each FerrAus share.
Brockman Resources has currently asked shareholders to take no action pending advisors UBS and Freehills review. Wah Nam has offered 30 shares in Wah Nam for each share in Brockman Resources.
Wah Nam International currently operates a copper mine in China and hopes to add Brockman Resources’ Marillana iron ore project and FerrAus’ exploration assets to its portfolio. The company statement made on November 3 said that it was considering buying several mining assets. It may even seek to build a new railway line in the Pilbara.