Australian Market Report of June 9, 2010: China Armco (AMEX:CNAM) Makes Strategic Investment in Apollo Minerals (ASX:AON)

The Australian share market opened slightly lower on Wednesday with weakness in financial stocks. Wall Street has provided a flat lead to the local market. Mining stocks were mixed while commodities prices were firmer. Gold miners gained after gold price hit a record high overnight in London and New York.

Yesterday the Australian shares strongly rebounded as bargain hunters moved in after the market's deep losses in Monday session.

In economics data today, the Australian Bureau of Statistics releases housing finance data for April. Westpac and the Melbourne Institute release their Survey of Consumer Sentiment for June.

Company News

Iron ore explorer Apollo Minerals Limited (ASX:AON) said it has entered into a Subscription Agreement with China Armco Metals Inc (AMEX:CNAM) for Armco to take up to a 19.9 per cent interest in Apollo at a total subscription of A$4.3 million. The funds raised will be used to advance the company's exploration activities, to carry out processing option studies and to evaluate opportunities to access local infrastructure and other project opportunities. Apollo also agreed to sell to Armco not less than 15 per cent of the off-take from its flagship Mount Oscar iron ore project.

Singapore Telecommunications Ltd (ASX:SGT) unveiled in an statement that its India-based associated company, Bharti Airtel Ltd (BOM:532454), has completed the acquisition of Zain Group's mobile operations in 15 countries across Africa for an enterprise valuation of US$10.7 billion. The transaction is the largest ever cross-border deal in emerging markets and will result in combined revenues of more than US$12.4 billion and EBITDA of US$4.7 billion, based on the last audited results. Bharti is now among the five largest mobile operators in the world.

Redflex Holdings Limited (ASX:RDF) said that after market closed yesterday it received an indicative, non-binding and confidential proposal to acquire all of the issued capital of Redflex by scheme of arrangement from a wholly owned subsidiary of Macquarie Group (ASX:MQG) at a price of A$2.5 per share. The company's board has not formed a view with respect to the proposal and recommends shareholders take no action at this stage. Redflex said previously in response to ASX query that it had been aware of a special crossing in respect of 8 million shares in the company after the close of trading on 4 June 2010 at a price of A$2.50 per share and the buyer is a large Australian financial institution


Related Companies

Redflex Holdings Limited
      

Macquarie Group Limited
       

China Armco Metals, Inc
      

Bharti Airtel Limited
      

Apollo Minerals Limited.