Ord River Resources (ASX: ORD) has moved a step closer to acquiring a 10% stake in Caledon Resources plc (ASX: CCD, LSE: CDN) as resolutions proposed for Guangdong Rising Assets Management Co., Ltd's (GRAM) acquisition of Caledon have been passed.
The resolutions were given the green light at Caledon’s Court Meeting and General Meeting in London on 25 July 2011.
Ord River currently holds an option to acquire up to 10% of Caledon post financial close of the acquisition.
On June 22 GRAM and Caledon reached agreement on the terms of a recommended cash acquisition of Caledon by Bidco, a wholly-owned indirect subsidiary of GRAM. The acquisition will be effected via a scheme of arrangement.
The offer price remains at £1.12 per share in cash. This values the existing share capital of Caledon at approximately £313.1 million.
Upon completion of the deal, ORD's option to acquire 10% of Caledon will add considerable value to ORD, as well as providing a strong growth investment in the fast growth coal sector.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18159/ord-river-resources-step-closer-to-acquiring-10-stake-in-coal-producer-caledon-resources-18159.html