10 Updates

Tony Poli Starts The Climb Back To Billionaire Status

May 7 2014, 5:17am CDT | by

Tony Poli’s climb back to billionaire status is off to bitter-sweet start with an initial $100 million boost courtesy of a hostile takeover bid from a Chinese partner in the Australian iron ore...

Filed under: news

 
 
 

11 weeks ago

Tony Poli Starts The Climb Back To Billionaire Status

May 7 2014, 5:17am CDT | by

Tony Poli’s climb back to billionaire status is off to bitter-sweet start with an initial $100 million boost courtesy of a hostile takeover bid from a Chinese partner in the Australian iron ore company he founded, Aquila Resources.

Baosteel, one of the biggest steel makers in China, boosted Poli’s fortune to around $400 million after surprising the Australian businessman with a bid pitched at a seemingly generous $3.16 a share, 39% above Aquila’s last sale.

Six years ago, Poli’s 29% stake in Aquila was valued at close to $1.1 billion (See: Shoots in a Forrest Shade ),  but that was at a time of high iron ore prices and hope that the company’s West Pilbara Iron Ore project in Western Australia would quickly join the boom in supplying China with up to 30 million tons-a-year of the steel-making raw material.

Falling Prices Have Not Helped

Progress on the project has been slow and not aided by land access issues and a fall in the iron ore price from as high as $160-a-ton to recent sales at around $105/t.

West Pilbara has also been held back by a complex ownership structure which sees Aquila with a 50% stake and the other 50% shared by the private resource investment company, American Metal & Coal International and the Korean steel maker, Posco.

Ironically the mining process, when started, could be the easiest part of West Pilbara with ore needing to be railed, on a line yet to be built, and exported through a port, which is also yet to be built, at a site called Anketell Point, adjacent to the Cape Lambert operations of the Anglo Australian mining giant, Rio Tinto.

Breaking A Logjam

Years of delay have finally become too much for Baosteel which already owns a 19% stake in Aquila.

In an unusual move for a Chinese company it has teamed up with an Australian rail operator, Aurizon, to make what is effectively a joint venture bid to break a logjam.

The involvement of Aurizon is an indication of Baosteel’s determination to efficiently manage the transport economics of a bulk material, something that has tripped other Chinese companies trying to work in the vast distances and high costs of the Australian resources sector.

There are other interesting features in the Baosteel bid, which values Aquila at $1.3 billion, include the timing in the iron ore price cycle which has been trending down for more than a year thanks to abundant supply which is tipped to enter a period of surplus after a decade in deficit.

Breaking An Oligopoly

If the takeover bid succeeds Baosteel faces a possible $6 billion capital cost for mine, rail and port development and while ore exports are unlikely this side of 2020 the bid cost plus development cost is a guide to the determination of the Chinese steel company to control its own mines in Australia rather than rely on the oligopoly of BHP Billiton, Rio Tinto and Fortescue Metals.

For Poli, an accountant turned mining project investor, the challenge now is to decide whether $400 million is a prize worth taking, or whether he can push Baosteel to boost its bid.

Any increase might not get him back into the billionaires club, but membership of the half-billion club would still be something to brag about.

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the D ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Grand National Steeplechase
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dew ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, D ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 millio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry M ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year invol ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Sk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

China's industrial profits up
Beijing, July 27 (IANS) Chinese industrial businesses saw their profits rise by 11.4 percent year-on-year in the first half of this year, official data showed Sunday.
 
 
Overgrown Beijing 'forbids' development in core areas
Beijing, July 26 (IANS) In its bid to decongest the Chinese capital, authorities have banned construction of new universities and hospitals around the Forbidden City located in downtown Beijing.
 
 
China to boost infrastructure in Tibet
Beijing, July 26 (IANS) China has vowed to upgrade the transport infrastructure in Tibet and expand the existing network of rail, road and air routes within the next six years.
 
 
Global film industry gender-biased: Study
London, July 26 (IANS) A study has revealed that only 22 percent of the crew involved in making 2,000 of the biggest grossing films worldwide over the past 20 years were women.
 
 
 

Latest from the Network

Lebanon expresses solidarity with Gaza, Mosul
Beirut, July 27 (IANS) The Lebanese parliament has expressed solidarity with the Palestinians of Gaza and the Iraqi Christians in Mosul. It announced "its solidarity with the Palestinian people against the aggression...
Read more on Politics Balla
 
Pakistani woman climbs world's seven highest peaks
Islamabad, July 27 (IANS) Samina Baig became the first Pakistani woman to climb seven highest peaks in seven continents in under eight months, media reported Sunday. Baig, 23, has completed the challenge of climbing...
Read more on Politics Balla
 
Eight militants killed in Afghan attack
Kabul, July 27 (IANS) At least eight militants were killed Sunday in a Taliban attack on a police official's house in Afghanistan, a security source said. The incident took place in the Kandahar province. "At least 10...
Read more on Politics Balla
 
Syrian army recaptures key gas field
Damascus, July 27 (IANS) The Syrian troops have recaptured a key gas field after intense fighting with militants of the Islamic State, the military said in a statement. The Syrian army, backed by the National Defence...
Read more on Politics Balla
 
Abducted Iraqi official released
Baghdad, July 27 (IANS) An Iraqi official who along with his security guards was abducted here has been released, an official said Sunday. "Riyadh al-Adhadh and his guards have been released by their kidnappers," an...
Read more on Politics Balla
 
China's industrial profits up
Beijing, July 27 (IANS) Chinese industrial businesses saw their profits rise by 11.4 percent year-on-year in the first half of this year, official data showed Sunday. According to the National Bureau of Statistics (...
Read more on Business Balla
 
Cruzeiro leads in Brazil's Serie A
Belo Horizonte, July 27 (IANS) Defending champions Cruzeiro have extended their lead at the top of Brazil's Serie A championship following a 5-0 victory over promoted Figueirense. Lucas Silva opened the scoring just...
Read more on Sport Balla
 
Striker Matri out for three weeks
Rome, July 27 (IANS) Genoa striker Alessandro Matri has been ruled out of action for three weeks with a calf strain. The loanee from Milan this season was sidelined for a friendly against Brescia Saturday, reported...
Read more on Sport Balla
 
Singer Sarah Darling turns designer
Los Angeles, July 27 (IANS) Country singer Sarah Darling has used her design instincts to use by creating a shoe collection for popular boot brand Durango. The "Bad habit" singer has been a spokesperson for the...
Read more on Celebrity Balla
 
Susan Sarandon confirms David Bowie romance
Los Angeles, July 27 (IANS) Actress Susan Sarandon has confirmed rumours about her having a secret fling with David Bowie in the 1980s. The actress starred with the legendary musician in the 1983 movie "The Hunger"....
Read more on Celebrity Balla