- Write by:
-
Wednesday, June 20, 2018 - 12:25:09 PM
-
1107 Visit
-
Print
Mining News - Mineral Resources is out of the tussle for control of junior miner Atlas Iron after it decided not to make a counter offer to the $390 million bid by a Hancock Prospecting subsidiary.
Mining News - Mineral Resources is out of the tussle for control of junior miner Atlas Iron after it decided not to make a counter offer to the $390 million bid by a Hancock Prospecting subsidiary.
Redstone Corporation’s 4.2 cent a share cash bid for Atlas on Monday was a substantial increase on the $280 million all-scrip offer made by MinRes in April.
This difference proved too much for MinRes; Atlas yesterday gave the Chris Ellison-led company three days to deliver a counter proposal, but it didn’t need them to come to today’s decision.
“Mineral Resources has determined that it will not make a counter proposal to the Redstone offer,” the company said via the ASX.
Atlas’ board had recommended the MinRes offer to shareholders, so will now likely do the same to the beefed up bid from Redstone.
A hurdle for Redstone may be Fortescue Metals Group, which owns a 19.9 per cent stake in Atlas after it bolstered its interest in the company by 15 per cent through a share purchase this month.
Hancock Prospecting also holds 19.96 per cent of Atlas, a stake it acquired a week after Fortescue increased its ownership.
Tad Watroba, Hancock executive director, said on Monday that Atlas’ assets offered potential long-term benefits alongside other assets in the Gina Rinehart-chaired company’s portfolio.
“There is potential to unlock value through the future development of Atlas resources as part of our wider system of operations,” Watroba said.
“If we obtain control of Atlas, we intend to conduct a strategic review to better understand the most appropriate time and means to develop and integrate Atlas into the existing operations of the Hancock Group.”
Atlas Iron’s board advised shareholders to take no action in relation to the Hancock offer, which is scheduled to open next month.
Short Link:
https://www.miningnews.ir/En/News/195415
China’s Ganfeng Lithium Group Co. plans to pay about $408 million to buy out its partner in a lithium mine being ...
Copper briefly traded through $10,000 a ton as investors raised bets on Federal Reserve rate cuts, and Goldman Sachs ...
China’s central bank added 60,000 troy ounces of gold to its reserves in April, official data showed on Tuesday, ...
BHP’s plan to divest the South African assets of its target Anglo American are key to the strategy behind the proposed ...
The secretary-general of the International Seabed Authority is set to run for a third term leading the United ...
First Quantum Minerals said on Monday it is looking forward to talks with Panama’s new government to find a resolution ...
BHP has put South Africa and its mining sector on the spot. The $140 billion Australian group’s ambitious swoop on rival ...
The chairman of Chile’s state-run copper giant Codelco said on Monday that he expects to reach a lithium deal with ...
Gold rose after mixed signals from the US, where optimism is growing the economy is on target for a soft landing as the ...
No comments have been posted yet ...