Sino-Lingnan Australia to fire less than two years of assets doubled

With only 200,000 Australian dollars left in the book, the timely injection of gold in Lingnan not only saved Pella, but also aunt Ilene and its management team to provide an unprecedented opportunity for them to come out of Australia Paul Anthe (Paularndt) with the support of Chinese shareholders and force them to a chair. Almost lay down like a business class on a plane. The Managing Director and CEO of the Australian lead-zinc miner, Pella, perilyalimited, has nothing in common with the other miners in Perth-most of them in a shirt suit and tie, while the 51-year-old Aunt Ilene wears a little red T-shirt and has a tight muscle.　　And looks more like an Australian football coach. "Without China's investment, we would never think of today's opportunity."　　"November 26, a Friday afternoon, in a big conference room on the second floor of Pella Corporation, he said with a strong Australian accent." Two months ago, the Pella company made a full cash offer to Canada's global star Mining Company (Globestarminingcorporation), December 10 is the extension of the acquisition deadline. According to Pella's December 5 announcement, the company has received all approvals, including from the China National Development and Reform Commission.　　By the end of the day, 94.37% of the world's star mining shareholders have accepted the offer of Pella, and if there were no surprises, the final bid would be around the corner. Just less than two years ago, Aunt Ilene faced the company's survival test, with the number of employees from more than 760 people being cut to 370. Now he can look beyond Australia and start a takeover in Canada.　　The contrast between two years is so great that it is not aunt Ilene to sigh that this is thanks to the great shareholder of China's Shenzhen, the gold Lingnan Nonferrous Metals Co., Ltd. (hereinafter called the Golden Lingnan, 000060.SZ). December 2008, the Sino-Lingnan to about 45 million Australian dollar stake in Pella, gained 50.1% shares, and then increased to 52%. Nearly two years past, Pella back to the dead, the stock price also returned to 0.5 AUD/share. The timely injection of gold in Lingnan has not only saved Pella, but more Aunt Ilene and management teams have provided unprecedented opportunities for companies to come out of Australia with the support of Chinese shareholders and to lay the world out.　　In many Chinese enterprises in Australia investment, the combination of Sino-Pella and Lingnan is quite distinctive, in this combination, Chinese enterprises are not only the resources of Australia, but also includes a platform for mutual benefit and development. The rabbit that hit the door. Prior to the acquisition of Pella, the company was busy in the first half of 2008 with an attempt to acquire another Australian mining company Pioneer Resource Company (PTANTAMTBK), which was engaged in a merger with the Indonesian Tower of Heraldresourcesltd. But the offer was not worth the price of another bidder. The acquisition, though not successful, has left a certain influence on the Australian mining industry in the country, virtually bringingThe opportunity. In the October 2008, as the financial crisis raged around the world and resource prices plummeted, Pella, the lead-zinc producer from Australia, was in trouble and faced the risk of capital breakage.　　Meanwhile, another Australian mining company CBH Resources Limited (cbhresourceslimited) proposed a merger with Pella. At this point Pella shares have plunged, from the beginning of 2007, the maximum of more than 5 Australian dollars/shares, fell to nearly 0.1 Australian dollars/shares, is the all-time low, the company desperately lack of operating cash.　　But CBH's swap plan does not bring cash for Pella, and Pella's board is unwilling to give up on this, looking to the Australian last acquisition attempt in the south of the south, through investment banks to find the golden Lingnan. At this time from the gold Lingnan last acquisition missed less than three months, Pella is simply hit the door to the rabbit. "The directors are very clear about Australia's capital markets and the lead-zinc mining industry, as if on the runway, grabbing the stick and running, not warming up and getting ready." This is one of the most important reasons we can make rapid decisions in the face of this opportunity.　　"Later as Pella director of the Gold Lingnan representative Han Minzhi recalls. "At that time, everything has fallen sprawling." But our president has confidence in the prices of minerals, and the due diligence team has a good eye.　　"Han Minzhi said. As a result, the negotiations were progressing smoothly and a stake agreement was soon reached.　　Only the requirements of the Lingnan is to absolute holding, must acquire more than 50% shares, the intention is to achieve Pella and gold Lingnan financial and table. This did not make aunt Ilene too difficult, because he did not have much choice. Although he is also in talks with another Chinese central enterprise, but in contrast, the Sino-Lingnan has a recent acquisition experience, can quickly make decisions and reactions, more can solve his immediate problems. December 9, 2008, Pella and CICC reached a capital injection agreement.　　At this time, the transaction has yet to be approved by the shareholders ' meeting and regulatory authorities, but the Pella offered a 10 million Australian dollar emergency.　　Gold Lingnan in the price has also given the temptation to pay the purchase price of 0.23 AUD/shares, relative to Pella trading 30 days before the average share price, more than 60% of the premium, far beyond the general acquisition of 30% premium level, but also laid the Pella board to accept the foundation of the gold Lingnan. December 15, 2008, Pella board formally refused to CBH takeover offer. December 29, the Sino-South Lingnan and Pella transactions received the approval of the Chinese government. February 5, 2009, the Australian Foreign Investment Review Committee (FIRB) also approved the investment application of the gold Lingnan.　　The transaction will be completed by February 9. The deal can be approved so quickly, Han Minzhi that the main reason is that Pella is in a difficult situation. "Then we came in and realized that they had less than 200,000 dollars in cash and couldn't hold out for two days." Before we came, they had started downsizing."Han Minzhi said. Pella at the time of the situation can be seen.　　Aunt Ilene later in March 2009 also revealed to the Australian media, in the approval process, asked if there are other ways to raise funds, they replied that the circumstances did not have the ability to raise money, if not with the Sino-Lingnan trade, the company had to close the mine. The CBH company, which originally planned to merge with Pella, was also acquired by Tohozincco.,ltd, a listed company in Tokyo, Japan, as a wholly-owned subsidiary of the latter in September 2010.　　This is difficult to let people not guess, the original CBH company proposed and Pella merger, probably just to sell a better price. Aunt Ilene After the completion of the acquisition of the model worker in the south, comply with the previous commitments, completely retained the original Pella management team, Aunt Ilene continued to serve as CEO and Executive director.　　Everything seems to be no different from before, except every once in a while, he needs to fly to China's Shenzhen business trip. According to the plan, Pella's board is taking turns in Perth and Shenzhen, and if the directors are really difficult to assemble, it will be through videoconferencing.　　However, whenever possible, Aunt Ilene will try to fly to Shenzhen, with CICC chairman Zhang to attend the board meeting face-to-face, he believes that this can better communicate with Chinese shareholders. As the largest shareholder of absolute holding, the Lingnan has absolute control over the board of directors. Of the Pella's six-person board, three representatives came from the Chinese Lingnan, including Zhang, Han Minzhi and Wang, while the other three were CEO and executive director Aunt Ilene, Vice chairman Patrick Auconno (Patricko ' Connor) and independent director Peter Halley (Peterharley).　　However, Hypotonic has two votes to vote, so in fact, the Lingnan in the vote in the absolute majority of the right. As for day-to-day management, there is little intervention by the large shareholder in the Lingnan. In addition to Han Minzhi was assigned to Perth to exercise its director's responsibilities and marketing, the Chinese Pella stationed only two visits to China's staff. Pella also did not carry out large-scale personnel expansion, but the volume of business has been restored to the normal period before the financial crisis, which means that the workload of each employee actually increased.　　However, employees know that the work is hard to come by and the enthusiasm is high. Having not been laid off, they worked very hard. "Before we came, management changed the manager, production and operation of the Organization more efficient, has been thin body, labor productivity is quite high, and the production basically did not decrease."　　"Han Minzhi said. The arrival of the golden Lingnan in the financial greatly alleviated the plight of Pella, allowing Pella to have a greater operating space. July 2009, Pella signed an agreement with CDE Australia (CDEAUSTRALIAPTYLTD) and Alene Mining Company (Coeurd ' Aleneminescorporation ') to suspend a sales contract requiring the delivery of more than 10 million ounces of silver, for which Pella would have to pay 55 million dollars, includingUSD 49.5 million is a loan secured by the Chinese bank from the Gold Lingnan guarantee.　　By releasing the contract, Pella could reduce operating costs while selling the silver on the spot market, which rose from $12.5/ounce to nearly 30 dollars/ounce. In the second half of 2009, as the market price of lead and zinc AG reversed and production increased, Pella achieved sales of 150 million Australian dollars, up 54% from a year earlier; net after-tax profit of 2850 AUD, compared with 2008 losses of $ more than 70 million.　　Aunt Ilene was also named as the 2009 model worker of the Lingnan, wearing a red flower. Out of the Australian gold Lingnan and Pella does not seem to go through too much running-in pain. The more exciting Aunt Ilene and other Pella management teams, the greater opportunity that Pella brings-out of Australia. "Our main goal is to stay overseas, or to use the advantages of the Pella platform, with the backbone of the team, and then Pella for the platform to buy." Since last year's mergers and acquisitions, we have always felt that this is a good opportunity for asset expansion, has been looking at a variety of projects.　　"Han Minzhi said. For Pella, it is possible to go out and develop, and the management individual's career also brings greater opportunities. "Pella's geological experts are valuable resources, they have global relationships that can be used to judge the reliability and potential of resources and are important in asset valuation." With this platform, our overseas extended arms are indeed long.　　"Han Minzhi said. The first attempt after the Pella of gold in the south of China, the eyes aimed at more than 1 billion U.S. dollars in the Anglo-American resources of zinc ore assets-scale than the Sino-Lingnan and Pella net assets add up. In early 2010, Anglo-American resources plan to divest the Namibian Scorpion Zinc ore (Skorpion), the Irish Lichne Zinc ore (Lisheen) and the South African Black Hills Mining (blackmountainmining) 74% rights and other zinc ore assets, Another Chinese company, China Metallurgical Industry Group, also participated in the bid, and the combination of Lingnan and Pella in CICC also entered the final round of bidding.　　Eventually, India's Vedanta Resource Company (VEDANTARESOURCESPLC) won a bid for about 1.34 billion dollars in total. Although the big acquisition did not succeed, the CICC has become more proficient and confident in overseas acquisitions.　　Han Minzhi explained that Pella has the talent advantage, and can avoid the Chinese concept of trouble, in addition Pella and Western companies belong to a system, industry standards, the implementation of the rules are consistent, the exchange of a little estrangement, the invisible among the efficiency will be better. In the acquisition of copper and gold producers Global Star Mining Company, the Sino-Lingnan is through the Pella offer. The global star Mining industry is mainly in Domincan Rep. has copper, gold and silver polymetallic ore and nickel mahogany mine, as well as in Canada has a lithium pyroxene mine project 60% interest. 2010 Global Star Mining produced 21 million pounds of copper, 17,000 ounces of gold production, silver 500,000Secretary。 On October 7, Pella announced a takeover bid for the global star mining industry, which was close to 130 million Canadian dollars (about 860 million yuan), with sales of $24.1 million in the second quarter of 2010 and a net profit of $5.4 million.　　Pella quoted $1.65 per share, valued at 184 million Canadian dollars for the global star Mining (about 1.2 billion yuan) and a premium of nearly 40%. The acquisition has been unanimously recommended by the global Star mining directors. Despite the November 30 Pella announced the deadline for the acquisition of the extension to December 10, December 5 Pella has been approved by the Chinese government to remove the obstacles to the acquisition. Since Pella announced the acquisition, the share price jumped 20%, showing a bullish market for the deal. Of course, all this is inseparable from the Chinese shareholders behind Pella.