GRAM takeover of PanAust

Overview:

• Guangdong Rising Assets Management Co (GRAM) acquired all the shares it did not already own in PanAust for around A$1.2 billion through a hostile takeover. 
• PanAust is an Australia incorporated mining company with assets in Laos, Papua New Guinea, Myanmar, and Chile.
• GRAM is a Chinese state-owned investment group. 
• GRAM paid $1.85 per share to increase its holding in PanAust from 23% to 70.433% after its initial offer was rejected. 
• GRAM’s takeover was 85% debt financed, with the acquirer borrowing RAM$745 million from Bank of China and China Development Bank. 

Ben Naylor - Regional editor