ASSET Backed Holdings, the company making a takeover play for Christmas Island phosphate miner Phosphate Resources Limited, has turned down a deal to buy Chinese phosphate-based chemicals business Norwest Chemicals.
Norwest Chemicals is owned by Asset Backed director David Argyle.
In May, Asset Backed announced that it was considering buying Norwest from Mr Argyle for $6.4 million, split $2.12 million in cash and the rest in shares.
Asset Backed has also announced a capital raising of $700,000 to partially fund its $6.3 million takeover bid for PRL.
Asset Backed company secretary Susmit Shah told WA Business News in July that the company had about $4 million in cash and would raise the remainder through a mixture of debt and equity raisings.
On that basis Asset Backed should be looking to borrow about $1.6 million for its takeover bid.
