Mon Aug 15, 2011
* Vote on provisions to be taken at AGM in September
* Protection will be similar to UK Takeover Code
By Julie Crust
LONDON, Aug 15 (Reuters) - African Minerals (AMIq.L), the largest company on London's junior AIM market, will ask shareholders next month to vote on increasing its takeover protection with the company's corporate profile likely to rise once it starts producing iron ore.
The provisions will be a diluted version of the UK's Takeover Code, which regulates the way acquisitions are done. The Bermuda-registered miner is not covered by the code.
African Minerals, which last month appointed Deutsche Bank as its nominated adviser and broker, said it is not looking to lift its protection in response to any specific interest.
"It is appropriate to protect shareholders given that the company is moving from exploration to producer in Q4 this year," a spokesman told Reuters.
African Minerals expects to start producing iron ore at its flagship Tonkolili project in Sierra Leone this year. Shandong Iron & Steel, the world's ninth-largest steel group, is paying $1.5 billion for a 25 percent stake in the project.
Shares in the company have risen about 30 percent this year, valuing it at some $2.9 billion.
African Minerals is led by Chairman Frank Timis, a self-made billionaire with drugs convictions who fled communist Romania.
Timis owns 12.4 percent of African Minerals with Timis Diamond Corp holding 12.6 percent. He is committed to remaining a director of African Minerals until Phase III development of the project has been completed.
Tonkolili is expected to produce 12 million tonnes of iron ore a year at full capacity, rising by 23 million tonnes and by 45 million a year following planned Phase II and III expansions. ($1 = 0.614 British Pounds)
(sourced Reuters)
* Vote on provisions to be taken at AGM in September
* Protection will be similar to UK Takeover Code
By Julie Crust
LONDON, Aug 15 (Reuters) - African Minerals (AMIq.L), the largest company on London's junior AIM market, will ask shareholders next month to vote on increasing its takeover protection with the company's corporate profile likely to rise once it starts producing iron ore.
The provisions will be a diluted version of the UK's Takeover Code, which regulates the way acquisitions are done. The Bermuda-registered miner is not covered by the code.
African Minerals, which last month appointed Deutsche Bank as its nominated adviser and broker, said it is not looking to lift its protection in response to any specific interest.
"It is appropriate to protect shareholders given that the company is moving from exploration to producer in Q4 this year," a spokesman told Reuters.
African Minerals expects to start producing iron ore at its flagship Tonkolili project in Sierra Leone this year. Shandong Iron & Steel, the world's ninth-largest steel group, is paying $1.5 billion for a 25 percent stake in the project.
Shares in the company have risen about 30 percent this year, valuing it at some $2.9 billion.
African Minerals is led by Chairman Frank Timis, a self-made billionaire with drugs convictions who fled communist Romania.
Timis owns 12.4 percent of African Minerals with Timis Diamond Corp holding 12.6 percent. He is committed to remaining a director of African Minerals until Phase III development of the project has been completed.
Tonkolili is expected to produce 12 million tonnes of iron ore a year at full capacity, rising by 23 million tonnes and by 45 million a year following planned Phase II and III expansions. ($1 = 0.614 British Pounds)
(sourced Reuters)
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