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SRL $1.71

aftermarket t/o announcement!

  1. groundzero

    27,993 posts.
    SRL has been taken over, announced after market, but trading (recent) activity shows people knew.

    Could be a little money to be made on this one come Tues.


    Company Announcement


    To Sell Nifty Copper Operations to Aditya Birla GRoup

    STRAITS RESOURCES LIMITED 2003-01-24 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    STRAITS AGREES TO SELL ITS NIFTY COPPER OPERATIONS TO ADITYA BIRLA
    GROUP

    The Directors of Straits Resources Limited ("Straits") - ASX Codes:
    SRL and SRLG - today announced the companys intention to sell the
    Nifty copper operations, including the Nifty exploration tenements
    located in the Paterson Province, and its interest in Maroochydore
    (the "Assets"). The Assets will be acquired by a wholly owned
    Australian subsidiary of Aditya Birla Group ("Birla"), a
    multinational conglomerate based in India with interests in copper,
    aluminium, textiles, cement, viscose staple fibre, and carbon black.

    The transaction is subject to standard regulatory approvals
    (including FIRB and the Reserve Bank of India) and approval by
    Straits shareholders.

    The net consideration to Straits for the Nifty (including exploration
    tenements) and Maroochydore transactions is approximately A$79.8
    million and A$10 million respectively. This is after repayments or
    assumption by the purchaser of all project finance debt, and a trade
    finance facility at the corporate level which total approximately
    A$69 million. The gross consideration for the transaction is A$158.82
    million. The consideration amount was derived from valuations
    performed on the Assets as at 30 June 2002, so that any subsequent
    changes to working capital between that date and the completion date
    will result in minor adjustments to the final consideration payable
    on the transaction.

    In addition, Birla will pay an amount equal to 3 per cent of the net
    smelter return generated from future gold production from the Nifty
    exploration tenements.

    Mr Milan Jerkovic, Chief Executive of Straits Resources stated, "this
    deal works both for Straits and for Birla, as Birla have the capacity
    and backing to extract the maximum value for the copper in the
    ground, while for us, it demonstrates our ability to enhance the
    value of assets".

    "Since the purchase of Nifty in 1998, we have transformed the
    operation into an efficient, high volume copper producer possessing
    one of the largest copper resources in Australia, and increased
    installed production capacity from 16,500 tpa at the time of
    acquisition to 27,500 tpa of copper metal today. This is a clear
    demonstration of our technical and project management ability".
    "After the transaction is completed, Straits will have a strong
    balance sheet for reinvestment in new resource opportunities, while
    maintaining our income producing coal assets in Indonesia, our copper
    assets at Whim Creek, and our very prospective exploration ground".

    Mr Jerkovic added, "We consider our situation to be "business as
    usual" and will now look to grow our portfolio of mining assets,
    focussing on projects which can deliver superior returns to our
    shareholders".

    BACKGROUND INFORMATION ON BIRLA

    Aditya Birla Group is among Indias largest business houses.
    Operating in the country for over 5 decades and globally for nearly
    30years, its revenues today are in excess of US$6 billion with net
    earnings of US$400 million, a US$4.5 billion asset base, a market cap
    of US$5 billion and 700,000 shareholders. Its 40 state-of-the-art
    manufacturing units and sectoral services, anchored by 72,000
    employees, criss-cross 18 countries including Thailand, Indonesia,
    Malaysia, Philippines, Egypt, Canada, USA, and UK.

    A premium conglomerate, Aditya Birla Group is a dominant player in
    all of the sectors in which it operates, such as aluminium, viscose
    staple fibre, copper, cement, viscose filament yarn, branded apparel,
    chemicals, carbon black, fertilizers, sponge iron, insulators, power,
    telecom, financial services, and more recently, insurance. It is:

    * The worlds largest producer of viscose staple fibre;
    * amongst the worlds largest producer of white cement;
    * the largest single location refiner of palm oil;
    * the third largest producer of insulators;
    * the fifth largest producer of carbon black;
    * amongst the lowest cost producers of aluminium globally and the
    largest fully integrated aluminium producer in India; and,

    * the largest copper producer in India and rapidly growing to global
    levels.

    In India, the Group is the single largest producer of viscose filament
    yarn, white cement and rayon grade pulp, the only producer of linen
    and a leader in the ready-to-wear branded apparel.

    ABOUT STRAITS RESOURCES LIMITED

    Straits Resources Limited was founded in 1992 and listed on the
    Australian Stock Exchange in July 1994. Since listing, the Company
    has established itself as a low cost copper and coal producer and
    strong value managers of assets, by turning over assets when
    opportune to do so.

    CURRENT OPERATIONS

    The Companys current major producing assets are:

    * a 100% interest in Nifty in Western Australia, currently designed
    to produce 27,500 tpa of copper cathode, and the major component of
    the current sale process;

    * a 100% interest in the Girilambone Copper Mine in New South Wales.
    This operation is currently winding down and the plan is to relocate
    the SX-EW plant to Whim Creek; and

    * an 80% interest in the Sebuku Coal Mine in South Kalimantan,
    Indonesia, producing at 2.0Mtpa, and capable of further increasing
    production by some 10-15%.


    DEVELOPMENT PROJECTS

    The Company owns 100% of the Whim Creek Copper Project which has the
    necessary development approvals in place, with only minor engineering
    design works to be completed pending board approval of construction,
    and relocation of the SX-EW plant from Girilambone.

    EXPLORATION

    The Company has extensive exploration ground prospective for copper,
    gold and coal, and although a portion of this ground is the subject
    of the current sale process (Maroochydore and the Paterson Province
    exploration tenements), the Company will retain exploration tenements
    prospective for;

    * copper and gold in Western Australia, around Whim Creek and
    Kalgoorlie;

    * copper and gold in New South Wales; and,
    * coal and gold in Indonesia.

    Priority targets have been identified for detailed exploration with
    work to commence in the short-term.


    INVESTMENTS

    The Company holds a strategic investment in the Tritton Copper
    Project in New South Wales through its shareholding in Tritton
    Resources.

    A general meeting of Straits shareholders is planned for early March
    to consider the proposed sale. For further information please contact
    either:

    Milan Jerkovic James Dracopoulos
    CHIEF EXECUTIVE COMPANY SECRETARY
    Mob: 0418 412 628 Mob: 0408 544 376

    Straits Resources Limited
    Tel (08) 9480 0500
    Fax (08) 9480 0520
    www.straits.com.au


    For media enquiries contact: For information on Aditya Birla:
    Brian Thornton Steve Mallyon
    Farrington National NM Rothschild & Sons
    Mob: 0411 366 668 Mob: 0407 464 529

    Straits Resources will be holding a media briefing in Perth on
    Tuesday, 28th January to outline the details of the transaction and
    expound on the future direction of the company. A teleconference
    facility will be available for interstate media. Contact David Besier
    on 0412 473 330 for further details



    'ave a great weekend!

    GZ

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