Straits cancels sell-off

AUSTRALIAN diversified miner Straits Resources has cancelled the sell-off of its coal business and planned listing on the Australian Securities Exchange, due to the financial crisis which is gripping markets across the globe.
Straits cancels sell-off Straits cancels sell-off Straits cancels sell-off Straits cancels sell-off Straits cancels sell-off

Courtesy Straits Resources

Vivienne Ryan

Straits said it would not proceed with the proposed restructure of its business in light of the present market conditions.

In a statement to the ASX, Straits subsidiary Straits Asia labelled the decision as a prudent response to “uncertain and volatile market conditions”

Straits Asia was in line to acquire a Madagascar and Brunei project from its parent as part of the proposed restructure announced in April.

The planned de-merger of the group would spin off its Indonesian coal assets to its coal vehicle, Singapore-listed subsidiary Straits Asia Resources, which would then be listed on the Australian Securities Exchange.

Dow Jones reports that a shareholder meeting is scheduled for September 30 to vote on the cancelation of the restructure.

Straits Resources posted a net loss of $A6 million for the six-month period ended June 30.

Shares in Straits were down by nearly 13% in mid-morning trade to $A3.14.

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