Trade Resources Industry Trends BC Iron Limited Has Offered to Acquire All The Issued Shares of Australian Miner IOH

BC Iron Limited Has Offered to Acquire All The Issued Shares of Australian Miner IOH

Australian iron ore development company BC Iron Limited has announced that it has offered to acquire all the issued shares of Australian miner Iron Ore Holdings (IOH) in a deal worth around A$250 million.

Under the takeover deal, BC Iron offers 0.44 new BC Iron shares and A$0.10 in cash for each IOH share held. If BC Iron acquires 100 percent of IOH issued shares, current IOH security holders will own 36.6 percent of the combined group.

IOH's major shareholder, Australian Capital Equity, which owns a 53 percent stake in the company, intends to accept the offer within 14 business days of the offer opening, in the absence of a superior proposal. IOH has recommended its minor shareholders to accept the offer.

According to BC Iron's statement, the transaction will create a leading mid-capacity iron ore company with an attractive production portfolio, strong operating cash flows and a multi-decade growth path for its shareholders.

Source: http://www.steelorbis.com/steel-news/latest-news/bc-iron-offers-to-acquire-iron-ore-holdings-841419.htm
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BC Iron Offers to Acquire Iron Ore Holdings
Topics: Metallurgy