Fortescue Metals Group Ltd, Australia's third-biggest iron ore miner, plans to raise an unspecified amount of capital after requested a trading suspension on its shares.
Fortescue, did not give any further details after trading in its shares was suspended placed in a trading halt, which will remain in place until either the company makes an announcement, or normal trading begins on February 25.
Company spokesperson Cameron Morse would not confirm or deny a report in the The Australian Financial Review that it would raise a minimum of $500 million from institutions including Chinese steel maker Hunan Valin Iron and Steel.
The fund raising is expected to underpin the expansion of Fortescue's iron ore operations in the Pilbara, the paper says. The company wants to more than double its iron ore production capacity to 120 million tonnes a year.
Valin is reportedly in talks to buy some of Harbinger Capital's near-16 per cent stake in Fortescue.
Harbinger, a long-time investor in Fortescue is expected to sell between 5-10 per cent to the Chinese group.
Source: Business Spectator
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