Australia Acquisition Corp and Harbinger Capital Partners LLC announced that they have agreed to a transaction in which AAC will acquire certain assets held by HCP in exchange for newly issued common shares in AAC.
The assets being acquired by AAC are a majority interest in Asian Coast Development (Canada) Ltd an international hotel and casino development company currently focused in Vietnam, and a minority interest in Ferrous Resources Limited an iron ore producer focusing on the expansion of an export iron ore business in the Iron Quadrangle in Minas Gerais, Brazil. These assets are collectively valued at approximately USD 350 million.
The proposed transaction is expected to be completed in August 2012. Following the closing, the acquired assets will create the initial platform for a globally diversified holding company. Shares of the new company, which will be named Harbinger Global Corp., are expected to trade on the NASDAQ Stock Market. Mr Philip A Falcone CEO of HCP will serve as executive chairman of the new company while Mr Peter Ziegler will serve as CEO. Messrs. Falcone and Ziegler will work together to develop and maximize value of the initial assets as well as to identify new opportunities to grow the company.
Mr. Falcone commented that "This transaction marks an important milestone for us in forming a new permanent capital vehicle focused on emerging markets. We continue to see opportunities to enhance value for Asian Coast Development in the fast-growing Far East hotel and gaming industry and Ferrous Resources, as it moves to increase organic iron ore production in Brazil. Additionally, we see this platform as providing investors in our funds with enhanced liquidity and opportunities for diversity and meaningful capital appreciation."
Mr Ziegler added that "We are extremely pleased to be partnering with Harbinger Capital Partners on this transaction. The acquisition of these assets provides AAC an opportunity to capitalize on the continuing growth of global emerging markets and, particularly those markets in the Asia Pacific region. This transaction not only brings together some exciting assets but also the management and financing expertise required to maximize their value. The AAC team and I look forward to working closely with the HCP team."
Under the terms of the proposed transaction, Harbinger Capital Partners will receive 25,429,299 newly issued shares of AAC common stock in consideration for the stake in ACDL and 9,295,534 common shares of AAC in consideration for the stake in Ferrous. A portion of the consideration will be issued in the form of preferred stock, convertible into AAC common stock.
Source - Australia Acquisition Corp
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