Consolidated Minerals Ltd., the largest shareholder in BC Iron Ltd. (BCI), didn’t decide whether to accept Regent Pacific Group Ltd. (575)’s A$267 million ($265 million) bid for the shares it doesn’t own in the producer before the offer was withdrawn.
“The company had not made a decision with respect to its investment in BC Iron because it was awaiting shareholder documentation from BC Iron, including the Independent Expert’s Report,” Gennadiy Bogolyubov, the largest shareholder of Consolidated Minerals, said in an e-mailed statement. “Without this information, it was not possible for the company to make a fully informed decision.”
Hong Kong investment company Regent yesterday abandoned the offer saying Consolidated Minerals “flatly opposed” the deal, citing a comment from Ukrainian billionaire Bogolyubov that it said was published Feb. 14 on the Business Insider Web site. Regent had offered A$3.30 cash for every BC Iron share, valuing Consolidated Minerals’ stake at A$64.5 million, according to data compiled by Bloomberg.
BC Iron said yesterday it was “perplexed” by Regent’s decision. BC Iron shares fell 15 percent to A$2.40 at the close in Sydney today. Bogolyubov holds 21 percent of BC Iron and Regent holds 19 percent, according to data compiled by Bloomberg.
“The market should be advised by Regent Pacific why it has purported to withdraw its offer,” Bogolyubov said in the statement. “All BC Iron shareholders should expect full disclosure of the circumstances leading to Regent Pacific’s actions.”
Regent, aiming to become a mid-tier mining house producing bulk commodities, base metals and gold in the Asia-Pacific region, was seeking to add iron-ore production to its portfolio. Steel consumption is predicted to jump 5.3 percent to a record this year, according to the World Steel Association.
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