An undisclosed buyer completed the acquisition of Topone Star Investments Ltd. from FeOre Limited.
As of April 3, 2014, the transaction is subject to the buyer getting listed on Hong Kong Stock Exchange. If it does not happen by September 30, 2015, the final deferred consideration will be released to the buyer's bank account and will instead transfer or issue 6.3% of its share capital to FeOre. Topone Star reported total assets of $76.74 million and total common equity of $9.41 million for the year ended December 31, 2013. BDO considered the transaction to be not fair but reasonable for shareholders. The Board of Directors made no recommendation on the resolution. The transaction is expected to be completed by April 28, 2014. FeOre Limited intends to use the proceeds of the first and second payments and existing cash balances by undertaking a buy back for up to AUD 42.2 million, redemption of convertible bonds, provision for contingent payment, cost of the transaction, working capital and to fund potential future project acquisition costs.
As of April 28, 2014, FeOre obtained extension to the letter of waiver whereby FeOre will complete the repurchase of convertible bonds on or before May 12, 2014. As of April 28, 2014, shareholders of FeOre voted in majority and approved the transaction. As announced on May 12, 2014, Topone Star Investments Ltd. has received $5.67 million in relation to the transaction. Adam Myers, Ashton Lombardo and Stuart Moore of BDO acted as fairness opinion providers to Board of Directors of FeOre Limited.
An undisclosed buyer completed the acquisition of Topone Star Investments Ltd. from FeOre Limited (ASX:FEO) on May 29, 2014. FeOre Limited has received the second payment in relation to the transaction and has transferred the total issued share capital of Topone Star to the buyer.