Allana Potash in Talks with CCCL before ICL Deal

The Financial Post reported that Allana Potash Corp. (TSXV:AAA) was in talks with China Communications Construction Company Ltd. (CCCL), China’s largest construction company, for a deal in which CCCC would acquire a 51 per cent interest in Toronto-based Allana for $156 million before it accepted the takeover bid from Israel Chemicals Limited.

As quoted in the market news,

The Financial Post received a copy of a memorandum of understanding (MOU) between Allana and state-owned China Communications Construction Company Ltd. (CCCC). The document, dated March 4, contemplated a deal in which CCCC would acquire a 51 per cent interest in Toronto-based Allana for $156 million. CCCC would then take charge of financing and construction responsibilities on Allana’s US$700 million Danakhil potash project in Ethiopia.

Ultimately, the two sides did not move beyond this framework agreement to reach a firm deal. On March 26, Allana agreed to a takeover offer from Israel Chemicals Ltd. (ICL) worth $137 million.

Click here for the full The Financial Post report