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Corrs and A&O act on metals demerger

Corrs and A&O act on metals demerger

Corrs Chambers Westgarth is advising Straits Resources Limited (Straits) on the demerger of its metals business from their coal business and the subsequent acquisition of its coal business by…

Corrs Chambers Westgarth is advising Straits Resources Limited (Straits) on the demerger of its metals business from their coal business and the subsequent acquisition of its coal business by PTT International Company Limited (PTT), advised by Allen & Overy.

Both transactions are being undertaken by schemes of arrangement and will see Straits metals and associated businesses transferred to Straits Metals Limited (to be renamed Straits Resources Limited post-demerger).

Upon completion of the demerger, Straits Metals will be listed separately on the ASX with existing Straits shareholders receiving one Straits Metals share for every one of their Straits shares. The coal business is to remain with Straits.

The transaction has required input from a range of legal disciplines including corporate advisory, litigation, energy and resources and banking and finance. Corrs advised Straits on all aspects of the transaction.

Straits' Chairman Alan Good described the transaction as a "significant event for shareholders" cementing the "value of their coal business which has been built over a long period of time". Good also said he sees the demerger as "creating for shareholders an exciting new copper-focussed metals business" that would provide them with the "opportunity to participate in further value creation".

The transaction is being led by Corrs partner Stephanie Daveson with senior associates Juanita Rayson and Simon Rear, while the Allen & Overy Sydney team is being led by Sydney-based partners Michael Parshall and Aaron Kenavan, assisted by Kylie De Oliveria and Claire Galt. The Allen & Overy Bangkok team is being led by partner Suparerk Auychai.

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