The Australian iron ore producer Mount Gibson Iron Limited (Mount Gibson) has announced that it has applied to the Australian Takeovers Panel regarding the conditional sale of a 19.73 percent stake in Mount Gibson owned by the Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) to Hong Kong-based Shougang Concord International Enterprises Company Limited (Shougang Concord), a subsidiary of the sixth largest Chinese steelmaker Shougang Holding Limited (Shougang Hong Kong).
Mount Gibson has stated in its release that the inquiries the company is making in the relation to the transaction are focused on the nature of the relationship between Shoungang Concord and APAC Resource Ltd. The latter company, which specializes in the trade of base metals, currently owns 160.8 million shares in Mount Gibson.
As a result of these inquires, Mount Gibson has asked the Takeovers Panel to turn down the sale of Metalloinvest's shares to Shougang Concord.