BC makes a play for last IOH shares
PERTH (miningweekly.com) – ASX-listed BC Iron would start the compulsory acquisition of the remaining shares in takeover target Iron Ore Holdings (IOH), after obtaining a relevant interest of some 90.37% in the company.
BC told IOH shareholders on Wednesday that the company would not be extending the takeover offer period, with the offer set to close on October 14.
“We are pleased to reach the 90% acceptance milestone. We thank IOH shareholders for supporting the transaction and welcome them to an enlarged BC Iron,” said BC Iron MD Morgan Ball.
He urged the remaining IOH shareholders to follow their directors' advice, and accept the takeover offer.
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.
Earlier in the week, BC Iron appointed Brian O'Donnell as nonexecutive director and Alwyn Vorster as executive director. Vorster will become a nonexecutive director when his employment contract with IOH ends.
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