The directors of African Iron ‒ an iron ore junior based in the Republic of Congo and listed on the Australian Stock Exchange ‒ have formally accepted Exxaro’s US$349 million takeover offer, the company has announced.
Exxaro ‒ a South African-based mining group with a diverse and world-class commodity portfolio in coal, mineral sands, base metals and industrial minerals ‒ is offering A$0.51 cash for each African Iron share, which it will increase to A$0.57 cash per share if it acquires a relevant interest in 75% or more of all the African Iron shares.
Exxaro is also offering A$0.31 cash for each listed option, which it will increase to A$0.37 cash per listed option if it acquires a relevant interest in 75% or more of all the African Iron shares.
This follows the announcement earlier this week that African Iron’s largest shareholder, Cape Lambert, had formally accepted Exxaro’s offer for shares equivalent to 19.99% of African Iron.
The company said that this week all shareholders and option-holders should receive African Iron’s target statement which details the offers.
“The African Iron board unanimously recommends that shareholders and option-holders accept the Exxaro takeover offers, in the absence of a superior proposal,” read the announcement.
The offer closes on 14 February at 17:00, Perth
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