Padbury plunges on deal collapse

UPDATE 2.15pm: Investors have dumped shares in Padbury Mining after the company announced on Wednesday that its $6.5 billion funding deal for the Oakajee port and rail project in the State's Mid-West had fallen through.

It was the first time shareholders and investors have had a chance to trade Padbury shares since the company first announced an astonishing funding agreement with an unnamed party on Friday, April 11.

The company was forced into a trading halt on the day and later suspension as questions emerged about the identity of the mystery backer.

WestBusiness later outed the backer as one-time hair regrowth king Roland Bleyer, who had previously been involved in failed financing agreements.

The deal collapsed on Tuesday night with Mr Bleyer blaming media reports about his history.

Padbury gave no reason for the deal's failure, saying only that the parties involved had signed a deed of termination and release.

The ASX has quizzed the company about details of the deal and how it unfolded in a question and answer statement to the company released to the market this morning.

The company is likely to face further questions about the deal from the market operator and regulators.

Shares in Padbury more than doubled after the $6.5 billion funding announcement on Friday, April 11, but were placed in a trading halt and subsequent suspension later that day.

Padbury shares fell sharply immediately after returning to the boards this morning and eventually closed down 2.8 cents, or 84.85 per cent, at 0.5 cents.

The West Australian

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