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Thursday, February 9, 2012

Exxaro yet to reach 50 pct of African Iron

Thursday, 09 Feb 2012

South African miner Exxaro Resources is 27% shy of reaching the minimum acceptance level in its USD338 million take-over bid for Perth-based iron ore explorer African Iron, with one week left to go.

Exxaro currently has a stake in Republic of Congo-focused African Iron of 22.93%.

The suitor, which is South Africa's second largest coal producer, last week declared its offer final and free from defeating conditions including regulatory action but exluding the 50 per cent minimum acceptance level.

It also said there would be no extension to the offer closing date of February 14.

Exxaro has offered 51 cents per share, which will increase to 57 cents per share if the suitor acquires a 75% or more stake in the target.

Exxaro will also pay 31 cents per listed option, rising to 37 cents per listed option if the 75% threshold is reached.

African Iron's directors last month accepted the offer in respect of the shares and listed options in the company that they personally owned.

Its major shareholder, resources investment firm Cape Lambert Resources, has sold most of its interest in African Iron and pledged to divest the remainder into the offer.

(Sourced from

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