Photo by: Bloomberg
PERTH (miningweekly.com) – Australian Capital Equity has accepted a takeover offer by iron-ore miner BC Iron for its 52.7% shareholding in Iron Ore Holdings (IOH).
At the start of trading on Friday, BC Iron had secured a 59.50% shareholding in IOH.
BC Iron is offering IOH shareholders 0.44 of its own shares, and 10c in cash for every IOH share, valuing the takeover target’s shares at A$1.59 each. The offer represents a 79% premium to the junior’s 60-day volume-weighted average price of 89c a share.
The IOH board has unanimously recommended that its shareholders accept the offer, in the absence of a superior proposal.
Meanwhile, the Pilbara Ports Authority has also granted its consent for the change of control of IOH and its wholly-owned subsidiary Cape Preston Logistics. The Port Authority consent was a condition of BC Iron’s offer, along with a minimum 90% acceptance condition.
IOH holds the Iron Valley project, which has a potential mine life of about 20 years, as well as the Buckland project, which includes a possible eight-million-tonne-a-year mine at Bungaroo South, and a new 196 km sealed haul road.
The company also holds two exploration tenements in west Pilbara, royalties on a number of tenements held by third parties in the central Pilbara region, as well as a number of tenements prospective for base metals.