Regent Pacific Group Ltd., the investment company that made an unsuccessful bid for BC Iron Ltd. last year, said it may sell its 20 percent stake in the Australian iron ore producer to buy stakes in other miners.
Regent Pacific sought shareholder approval for a potential stake sale worth A$82 million ($86 million) at yesterday’s close, according to a statement late yesterday from the Hong Kong-based company. Jamie Gibson, Regent Pacific’s chief executive officer, resigned as a non-executive director of BC Iron Ltd., the Perth-based company said today in a statement.
“I would like to acknowledge the considerable support Regent Pacific has provided to BC Iron over the years having taking its initial holding in the company some years ago,” Chairman Tony Kiernan said in the statement.
Regent Pacific, which has a market value HK$694 million ($90 million), in January 2011 offered A$267 million, A$3.30 a share, for the stock in BC Iron it didn’t own. The bid failed after biggest shareholder Consolidated Minerals Ltd., led by Ukrainian billionaire Gennadiy Bogolyubov, opposed the proposal.
Separately, BC Iron said today it will sell new shares at A$3.04 apiece to help fund the purchase of an additional stake in the Nullagine Iron Ore Joint Venture from Fortescue Metals Group Ltd. that was announced earlier this month.
BC Iron slipped 1.5 percent to A$3.37 at 10:20 a.m. in Sydney.