Australia-based iron ore miners Brockman Resources（BRM）and Ferraus Ltd（FRS）have both recently advised shareholders to reject the acquisition bids for the companies made by Hong Kong-based Wah Nam International Holdings Limited listed.
The rejections are linked to concerns over Wah Nam's liquidity and the value of its equity. In addition, Wah Nam is considered to lack experience in mine management and iron ore development.
On November 25, Wah Nam issued a statement recognizing difficulties in the acquisition of BRM, but said it will continue to push for approval of the acquisition proposal.
The main business of BRM includes exploitation of the southern Australian Marillana ore project, covering an area of 96 square kilometers, with deposits of 1,001 million mt of clasolite. Meanwhile, FRS is involved in the exploitation of reserves of 316 million mt of iron ore in the Pilbara region of Western Australia.
The main business of Wah Nam International Holdings Limited mainly covers limousine rental services and airport shuttle rental services. The company entered the business of exploitation of mineral resources in September 2008.