Evaluator approves Felix takeover

The proposed $3.5 billion takeover of Felix Resources by Chinese State-owned Yanzhou Coal has been ruled fair and equitable by an independent evaluator.

The proposed $3.5 billion takeover of Felix Resources by Chinese State-owned Yanzhou Coal has been ruled fair and equitable by an independent evaluator, Felix announced yesterday.

In an independent expert review commissioned by Felix, financial advisory firm Deloitte found that the friendly 100% takeover bid is in the interest of Felix shareholders.

“We are of the opinion that the proposed scheme is fair and reasonable to shareholders. It is therefore in the best interests of shareholders,” Deloitte said.

In light of the findings, Felix directors have maintained their support of the deal.

“In the absence of a superior offer, all Felix directors who hold Felix shares intend to vote in favour of the scheme and continue to unanimously recommend shareholders do the same,” Felix said.

The proposed deal has come under a cloud after recent comments from the Foreign Investment Review Board (FIRB) executive director Patrick Colmer that the Federal Government may look to limit foreign investment in Australian mining companies to around 15%.

The Felix-Yanzhou deal is currently being considered by FIRB, which after the Deloitte recommendation represents the only major hurdle remaining in the way of the takeover.

If approved, the deal would be the largest ever Chinese takeover of an Australian company in any industry.

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