Global miner Rio Tinto Ltd
(ASX:RIO) says it has received approval from the Brazilian National Defence Council on the sale of its Corumba iron ore mine in Brazil to Brazilian miner Vale S.A.
The transaction worth US$750 million, is expected to close shortly.
In January Rio announced that it had reached an agreement with Vale to sell its Corumba iron ore mine and associated river logistics operations in Paraguay, the Potasio Rio Colorado potash project in Argentina and the Regina exploration assets in Canada for US$1.6 billion.
Over the last 18 months, Rio has announced US$6.6 billion in asset sales in an effort to reduce its debt.
Rio says in addition to this it has also received a binding offer from Amcor for US$2.025 billion for Alcan Packaging global pharmaceuticals, global tobacco, food Europe and food Asia divisions. Rio Tinto’s profits took a big tumble in 2008 recording just half of its result in 2007.
Coal miner Felix Resources Ltd (ASX:FLX) says its Chinese suitor Yanzhou Coal Mining Company has withdrawn and resubmitted its application to the Foreign Investment Review board to acquire Felix, unchanged.
Yanzhou Coal has made a takeover offer for Felix that values the company at over $3 billion.
In a statement the Chinese company says its decision to resubmit its application was in order to facilitate the approval processes by the relevant regulatory authorities for the acquisition.
Yanzhou Coal Mining says it has been communicating and continues to communicate with the relevant regulatory authorities of the People’s Republic of China Government and the Australian Government about the transaction.
The decision to resubmit its application is not expected to delay the transaction timetable which was set out at the time the takeover offer was announced. Looking at the past five years Felix Resources best net profit was in 2008.
Healthcare company Sigma Pharmaceuticals Ltd (ASX:SIP) has reported a five per cent rise in net profit for the half year and says it maintains its guidance for modest growth in net profit for the full year.
Net profit after tax for the six months to July 31 came to $32.2 million, up from $30.7 million for the same period a year ago.
Net external sales revenue rose 3.5 per cent to $1.5 billion.
Managing director Elmo De Alwis says the result reflects the defensive nature of the group.
Looking ahead the company says it maintains it previous guidance of modest growth in net profit after tax for the full year ending January 31 2010.
Sigma Pharmaceuticals declared an interim dividend of three cents a share.
The pharmaceutical company also recently announced a$297 million equity raising to be used to assist in funding the Bristol-Myers Squibb acquisition and create a stronger capital structure for the company and greater financial flexibility. Sigma Pharmaceuticals profits have declined in the last couple of years.
