CORRS Chambers Westgarth has advised China Metallurgical Co Ltd on the Australian aspects of the world’s second largest initial public offering (IPO) of 2009, the firm said.
The Shanghai Stock Exchange float was timed to coincide with a simultaneous issue of up to 2.61 billion H shares on the Hong Kong Stock Exchange with proceeds from the combined IPO totalling US$5.13 billion. The IPO was more than 200 times oversubscribed.
MCC will use the proceeds to fund mining rights in Afghanistan, Argentina and Pakistan, and iron and steel projects in Australia, India, Vietnam and Mongolia as well as to repay bank borrowings and supplement its working capital.
Corrs Partner and chair of Corrs energy and resources division, Adam Handley, said: "The IPO opens up additional opportunities for MCC to pursue its Australian and broader international strategy and we are delighted to have been able to play a role in that.”
Corrs has a long-standing relationship with MCC, one of China’s leading State Owned Enterprises.
The firm advised it on its recent investments in Australia, including MCC’s $400 million acquisition and $4 billion plus development of the Cape Lambert magnetite project in Western Australia as well as the acquisition of its equity stake and negotiation and implementation of its major EPC contract on the Cape Preston magnetite project in Western Australia.