Chinese company Wah Nam International has effectively gained control of iron ore company, Brockman Resources. Picture: File Source: Bloomberg

BROCKMAN Resources’ bitter takeover fight against Wah Nam International may be lost, after the Hong Kong listed company won effective control of the WA iron ore explorer.

In an after market release, Wah Nam revealed it now controls 52% of Brockman’s shares, making it the company’s majority shareholder.

Wah Nam had picked up an extra 6.6% of Brockman’s shares since it last disclosed its holding to the market with an extra 9.55 million shares sold into the offer since then.

The Hong Kong company also has a bid on the table for Brockman neighbours FerrAus, as part of a consolidation play for the two company’s iron ore assets, and also revealed it has begun its creep up the FerrAus register.

In a second disclosure this evening Wah Nam showed it now controlled almost 18% of FerrAus shares, up from its initial stake of 16.8%.

With Wah Nam now effectively in control of Brockman, however, it’s likely to move up the FerrAus register at a faster pace. FerrAus directors have also said they may reconsider their rejection recommendation to shareholders if the Hong Kong company wins a majority stake in its cousin company.

While Wah Nam is now in a position to directly control the composition of the Brockman board, it’s not necessarily the end of the road for the company’s current directors.

(Sourced from www.perthnow.com.au)