Australian Mining Sector Update: May 2014

Recent announcements

ASX-listed Aurizon announced on 5 May 2014 a joint conditional off-market takeover offer by Baosteel Resources Australia and Aurizon Operations to acquire 100% of the share capital of ASX-listed Aquila Resources . If the offer becomes unconditional, accepting Aquila shareholders will receive $3.40 cash for each Aquila share they hold, valuing Aquila at approximately $1.4 billion. At the time of announcing the takeover offer, the bidders had a relevant interest in approximately 19.8% of Aquila shares (held by Baosteel and its associates). The Aquila shares accepted into the takeover offer will be allocated between the bidders such that, following the successful completion of the offer, Aurizon will own up to 15% of the Aquila shares and Baosteel will own all of the remaining Aquila shares acquired under the offer. If the offer closes with the bidders owning between 50% and 90% of Aquila Shares, Aurizon will own 10% of Aquila and the Baosteel will