Chinese sovereign wealth fund Guangdong Rising Asset Management (Gram) intends to launch a takeover bid for Queensland coking coal producer Caledon Resources.
Gram and its recently formed Australian subsidiary Bidco have signed a preliminary in-principle agreement to acquire the London-based Caledon at £1.12 a share.
This would value the proposed takeover at £251.6 million, a premium of more than 25% to the value of Caledon's Australia-listed shares
Before a formal Bidco bid is launched, Gram aims to first take care of Chinese government approvals and this is expected to be completed by December 31.
Gram, run by the Guangdong Provincial People’s Government, is the second-largest stakeholder of China Telecom. It is also the controlling stakeholder of China-listed Zhongjin Lingnan Nonfemet, which acquired a 50.1% stake in Australian lead and zinc producer Perilya in 2009.
Gram acquired a 19.9% stake in Australian-listed, Laos copper and gold producer PanAust in 2009.
Caledon, which owns the Cook mine in the Bowen Basin, courted acquisition interest in 2009 but approaches failed to materialize into binding offers. A merger with major stakeholder Polo Resources was also terminated due to market volatility.

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