On Thursday, 3 July, Aurizon announced that Baosteel Resources Australia and Aurizon Operations (the Bidders) entered into a Takeover Implementation Agreement (TIA) with Aquila Resources (Aquila) to facilitate the change in control and management of Aquila to the Bidders.

Tony Poli (chairman and largest shareholder of Aquila) has agreed to sell his 28.9% stake in Aquila (a condition of the TIA), increasing the Bidders’ stake to 69.3%.  Mineral Resources also agreed to sell its $12.8% stake after failing to secure a merger deal with Aquila.

Under the TIA, Tony Poli and two directors of Aquila, Gordon Galt and Denise Goldsworthy, will resign from the Aquila board on or before 11 July and four of the Bidders’ nominees will be appointed.

The remaining 30% of Aquila shareholders have until 25 July to accept the $1.4b ($3.40 per share) bid.

Read the announcement and TIA here.

For further information, please contact Jay Leary, Partner, Brisbane, or your usual Herbert Smith Freehills contact.