- Iron ore miner Champion Iron (CIA) has proposed to re-domicile to Canada from Australia
- The company says the Board has considered the benefits and disadvantages of the move, and believe that Canada is the best option
- If this deal goes ahead, Champion Australia will be delisted from the Australian Securities Exchange (ASX), and will become a subsidiary of Champion Canada
- The Board has unanimously recommended that shareholders of Champion Australia approve this decision to re-domicile
- Champion Iron is up 1.78 per cent, trading at $2.86 per share
Iron ore miner Champion Iron (CIA), has proposed to re-domicile to Canada. The re-domiciliation process will see the company transfer its registration from Australia to Canada.
The company said the Board has considered the benefits and disadvantages of the move and believes that Canada is the best option.
Champion explained its decision will align with the location of its newly listed parent company, Champion Canada.
It’s expected the re-domicile will increase the attractiveness of Champion Canada to more diverse financial markets, and to Canadian institutional investors.
If this deal goes ahead Champion Australia will be delisted from the Australian Securities Exchange (ASX), and will become a subsidiary of Champion Canada.
Champion Canada will then be listed on the ASX and the Toronto Stock Exchange (TSX).
“Although our company has evolved into a successful mining operator headquartered in Canada, we maintain significant roots in Australia where many of our early investors reside,” company CEO David Cataford said.
“While today’s announcement aligns our company’s domicile with its operations, we look to build our already strong shareholder base in Australia with our active listings on the TSX and ASX, which will remain unaffected by this announcement,” he added.
However, this movement will need shareholder and government approval before it goes ahead.
The Board has unanimously recommended that shareholders of Champion Australia approve the re-domicile by voting in favour of the scheme. The shareholder meeting will be in March.
If shareholders vote yes, The Federal Court of Australia and the Foreign Investment Review Board will also need to approve the scheme.
At market close, Champion Iron is up 1.78 per cent, trading at $2.86 per share.