The Australian iron ore exploration company Murchison Metals Ltd (Murchison) has announced that it has accepted the AU$135 million (approx.US$109 million) takeover offer from Chinese steel producer Sinosteel for its 9.2 percent stake in Midwest Corporation Limited.
According to Murchison's board, the sale of the Midwest shares was in the company's best interests, especially given significant changes in the world financial markets over the last three months.
"The cash raised through the sale gives Murchison greater flexibility in relation to both developing existing projects and in pursuing fresh opportunities," stated Murchison's executive chairman Paul Kopejtka.
Previously, Murchison Metals Ltd dropped its competing plan for a merger with Midwest, also stating that it did not plan to accept Sinosteel's $6.38 a share offer for its holding in Midwest and would seek to maximize the value and the strategic significance of its shareholding.