3,417.42
Over the last 12 months,
Mongolia has become an attractive investment destination for companies listed
on the Hong Kong Stock Exchange (HKEx). Several such companies have acquired
resource assets in Mongolia worth USD966 million in M&A deals. All recent
Mongolia M&A deals in which Hong Kong companies were involved were
completed through injection of resource assets into the existing publicly
listed companies. Before acquisition, these companies engaged in a diverse
range of activities and industries including agriculture, waterworks, IT, clean
tech, plastic products and even manufacturing of toys and gifts.
The following are some of
the HKEx-listed companies now primarily Mongolia-focused resource
companies following their acquisitions:
-Bestway International Holdings, an investment holding company engaged in
trading of plastic products, acquired two tungsten mines in Mongolia for USD121
million in July 2009.
-North Asia Resources Holdings, formerly known as Green Global Resources Ltd.,
acquired 100% of North Asia Resources Group Ltd., a private resource company in
Mongolia, for USD227million in December.
-Kiu Hung Energy Holdings, an investment holding company with businesses in
energy, gift and toy industries, acquired coal assets in Mongolia from First
Dean Holdings Ltd for USD180 million in March.
and terminals, has acquired an 87.9% stake in Sun Progress Ltd which owns a
copper-gold-silver mine in Mongolia for USD193 million in May.
engineering, acquired a number of coal, gold and copper mining and exploration
licenses in Mongolia for USD245 million in June.
CyberBase Ltd., was the first HKEx-listed company to acquire a resource asset
in Mongolia through asset injection. It paid over USD150 million for a coal
mine in January 2007.
Mongolia through asset injections. Some small-cap companies may find it too
tempting to acquire resource assets in Mongolia in order to revive their
sagging fortunes and join the growing league of Mongolia-focused resource
companies at the HKEx. At the same time, the private owners of resource
companies in Mongolia might target small-sized HKEx-listed companies in their
effort to seek “back-door listing” through lucrative reverse
takeovers.
