valin-inks-798-million-fortescue-deal

Valin inks $798 million Fortescue deal

The Chinese firm agrees to acquire 16.5% of Fortescue Metals Group in the third deal by a Chinese company in Australia this month.

Hunan Valin Iron and Steel Group Company Valin will acquire a 16.5% stake in Australia's Fortescue Metals Group through a combination of new equity and a sell-down by an existing shareholder. The total outlay is A$1.24 billion $798 million.

Valin will buy 225 million new shares of Fortescue at a price of A$2.48 per share, providing A$558 million of funding for the iron ore company. It will also purchase 275 million shares from investment firm Harbinger Capital at the same price. Harbinger currently owns around 16% of Fortescue, but its stake will drop to less than half this level after the sell-down.

Fortescue last traded at A$2.83 a share on February 20 before...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222