A US private credit investor is considering a takeover proposal for Tasmania’s Liberty Bell Bay smelter even as the smelter’s owner denied that a proposal has been made, according to a recent ABC News report.
Representatives from White Oak met with Tasmania’s Industry Minister Felix Ellis on August 26 for the third time following reports that the firm was working on an AU$80 million takeover proposal.
However, Liberty Bell Bay owner GFG Alliance said there has been no purchase proposal for Australia’s only manganese alloy smelter.
Liberty Bell Bay has been in limited operations since May. The company has accepted a AU$20 million loan from the Tasmanian government after facing financial issues and difficulties in obtaining manganese ore due to supply disruptions. It failed to restart operations when the shipment arrived in October.
Corporate law professor at the University of Sydney, Jason Harris, said White Oak will likely follow a standard distressed debt playbook and will seize the business assets of Liberty Bell Bay and try to make it more profitable.
Representatives from Liberty Bell Bay visited the US the week of October 20 to gain clarity on the volume and prices of manganese ore before restarting operations.
Tasmanian Industry Ministry Ellis has lobbied his federal counterpart, Tim Ayres, to provide federal funding for Liberty Bell Bay.
A spokesperson for Ayres said the minister will work with the Tasmanian government and affected businesses.