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Firms resource Chinese share placement deal

Firms resource Chinese share placement deal

Allens and Bakers have advised on a $452 million placement of shares to Chinese state-owned CITIC Group.

Firms: Allens (Alumina Limited); Baker & McKenzie (CITIC)

Deal: Placement of shares to Chinese state-owned CITIC

Area: Corporate E&R

Value: $452 million placement of shares at an issue price of $1.235 a share

Key players: Partner Greg Bosmans led for Allens, together with special counsel Gadi Bloch. The lead Baker & McKenzie partner was Ashley Poke with support from senior associates Michael O'Neill and Tuanh Nguyen

Deal significance: The number of shares placed is equal to 15 per cent of Alumina’s pre-placement capital base, and represents 13.04 per cent of Alumina’s capital base following completion.

According to partner Greg Bosmans, who led the Allens team on the transaction, the placement is significant for Alumina, enabling the company to reduce its gearing level and introduce a strategically aligned and financially strong long-term investor who will bring valuable industry expertise and market insight.

The placement to CITIC by Alumina also continues the trend of Chinese state-owned enterprises making substantial investments in Australian companies, particularly those in the resources sector.

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