Friday,Feb18,2011 16:38:38 (GMT+2)
Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, have announced the expiration of their joint offer to takeover Canadian miner Baffinland Iron Mines Corporation (Baffinland) as of February 17. The companies now own 93 percent of Baffinland through their C$590 million ($593 million) joint offer.
The offer sought all shares of the company for C$1.50 (US$1.51) in cash per common share. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and 30 percent share of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
C$4 billion project
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4.02 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities, also valid for the joint offer.
(sourced:steelorbis)
Tags: iron ore , raw material , USA , Luxembourg , Canada , Europe , European Union , North America , mining , M&A , ArcelorMittal , Pellets , Lump ore , Fine ore
Showing posts with label Nunavut Iron Ore Acquisition Inc. Show all posts
Showing posts with label Nunavut Iron Ore Acquisition Inc. Show all posts
Saturday, February 19, 2011
Monday, February 7, 2011
ArcelorMittal and Nunavut now own 90 percent of Baffinland, extend offer
Monday, 07 February 2011 16:21:35 (GMT+2)
Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, now own 90 percent of Canadian miner Baffinland Iron Mines Corporation (Baffinland) through their C$590 million ($593 million) joint offer, after acquiring 89,710,019 more common shares. The joint stake was 65 percent before this recent transaction. The offer has also been extended until the end of February 17.
The offer seeks all shares of the company for C$1.50 (US$1.51) in cash per common share. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and 30 percent of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
C$4 billion project
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4.02 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities, also valid for the joint offer.
Tags: iron ore , raw mat , USA , Luxembourg , Canada , Europe , North America , mining , M&A , ArcelorMittal(sourced:steelorbis)
Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, now own 90 percent of Canadian miner Baffinland Iron Mines Corporation (Baffinland) through their C$590 million ($593 million) joint offer, after acquiring 89,710,019 more common shares. The joint stake was 65 percent before this recent transaction. The offer has also been extended until the end of February 17.
The offer seeks all shares of the company for C$1.50 (US$1.51) in cash per common share. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and 30 percent of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
C$4 billion project
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4.02 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities, also valid for the joint offer.
Tags: iron ore , raw mat , USA , Luxembourg , Canada , Europe , North America , mining , M&A , ArcelorMittal(sourced:steelorbis)
Friday, February 4, 2011
Arcelor, Nunavut closer to control of Baffinland
Thu Feb 3, 2011 11:41am GMT
* Arcelor, Nunavut hold 67 pct shares,
* Represents 64 percent of fully dilutes shares
Feb 3 (Reuters) - ArcelorMittal (ISPA.AS: Quote) and Nunavut Iron Ore inched closer to taking control of Baffinland Iron Mines (BIM.TO: Quote) as they took an additional 6.2 million shares in the junior explorer, raising their ownership to 64 percent.
The world's No. 1 steelmaker and private equity-backed Nunavut, which were earlier locked in a battle to get Baffinland's Mary River project in the Canadian Arctic, made a joint bid of C$1.50 a share for Baffinland last month.
Between them, ArcelorMittal and Nunavut now hold 67 percent of all outstanding shares and 45 percent of outstanding 2007 warrants, representing 64 percent of fully diluted shares.
ArcelorMittal and Nunavut have agreed to split their ownership of Baffinland at 70 percent and 30 percent.
The C$590 million offer is set to expire on Friday.
Shares of Baffinland, which owns nine high-grade deposits that could hold enough iron ore to supply all of Europe for years to come, closed at C$1.50 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair, aftab.ahmed@thomsonreuters.com; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net)
* Arcelor, Nunavut hold 67 pct shares,
* Represents 64 percent of fully dilutes shares
Feb 3 (Reuters) - ArcelorMittal (ISPA.AS: Quote) and Nunavut Iron Ore inched closer to taking control of Baffinland Iron Mines (BIM.TO: Quote) as they took an additional 6.2 million shares in the junior explorer, raising their ownership to 64 percent.
The world's No. 1 steelmaker and private equity-backed Nunavut, which were earlier locked in a battle to get Baffinland's Mary River project in the Canadian Arctic, made a joint bid of C$1.50 a share for Baffinland last month.
Between them, ArcelorMittal and Nunavut now hold 67 percent of all outstanding shares and 45 percent of outstanding 2007 warrants, representing 64 percent of fully diluted shares.
ArcelorMittal and Nunavut have agreed to split their ownership of Baffinland at 70 percent and 30 percent.
The C$590 million offer is set to expire on Friday.
Shares of Baffinland, which owns nine high-grade deposits that could hold enough iron ore to supply all of Europe for years to come, closed at C$1.50 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair, aftab.ahmed@thomsonreuters.com; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net)
Wednesday, January 26, 2011
Baffinland takeover saga nearing an end
January 26, 2011News Services After some dramatic twists and turns, the wild takeover saga of Baffinland Iron Mines Corp. appears to be nearing a conclusion.
Joint bidders ArcelorMittal and Nunavut Iron Ore Acquisition Corp. assumed control of Toronto-based Baffinland Tuesday after taking up more than half its shares in their joint $590-million takeover bid.
The two companies said they now have control over 59% of Baffinland shares.sourced: Postmedia News
Joint bidders ArcelorMittal and Nunavut Iron Ore Acquisition Corp. assumed control of Toronto-based Baffinland Tuesday after taking up more than half its shares in their joint $590-million takeover bid.
The two companies said they now have control over 59% of Baffinland shares.sourced: Postmedia News
Sunday, January 23, 2011
OSC declines to comment on request by Baffinland Iron Mine
Sunday, 23 Jan 2011
Bloomberg reported that Ontario's securities regulator declined to comment on a request by a former Baffinland Iron Mines Corporation executive seeking to temporarily block an ArcelorMittal led takeover before a January 24th 2011 deadline.
In a letter to the Ontario Securities Commission, Mr Gord McCreary former CEO said that Baffinland shareholders haven't been provided with enough information about the proposed CAD 590 million joint offer from ArcelorMittal and Nunavut Iron Ore Acquisition Inc. The OSC should investigate whether to stop trading in Baffinland shares tendered to the offer.
Mr McCreary said that "It would appear that the offeror have come to an agreement for the sole purpose of purchasing the securities of Baffinland without further price escalation, thereby denying the non related security holders of Baffinland of a fundamental benefit of the competitive bid process."
Ms Carolyn Shaw Rimmington, an OSC spokeswoman, said that it's the commission's policy not to comment on any correspondence it may have received.
ArcelorMittal and Nunavut, backed by Houston based private equity firm Energy & Minerals Group, had been in a bidding war for Baffinland when on January 14th 2011 they said they were combining forces to make a CAD 1.50 per share bid for Baffinland. Under the terms of the offer, ArcelorMittal would end up controlling 70% of Baffinland and Nunavut the rest.
Mr Tom Johnson, a New York based ArcelorMittal spokesman, said that "Our bid is in best interests of all shareholders. Nunavut is receiving no special treatment here and will be responsible for bearing its pro rata share of the purchase price and all costs associated with the joint offer, and the development of the Mary River Project."
Mr Bruce Walter chairman of Nunavut said that "We are confident that our offer complies with all applicable laws and that it will be proceeding on schedule."
Baffinland said this week that it recommended shareholders accept the joint takeover offer.
Mr Richard McCloskey CEO of Baffinland said that "We supported the bid. It's up to the shareholders to decide."
Mr McCreary said in a telephone interview that he's negotiating with two Chinese companies that may be interested in making a competing bid for Baffinland, which is developing the Mary River project in the Canadian Arctic.
The value of the joint offer from ArcelorMittal and Nunavut was calculated using the 393.39 million outstanding Baffinland shares cited in a January 10th 2011 Nunavut statement.(Sourced from bloomberg)
Bloomberg reported that Ontario's securities regulator declined to comment on a request by a former Baffinland Iron Mines Corporation executive seeking to temporarily block an ArcelorMittal led takeover before a January 24th 2011 deadline.
In a letter to the Ontario Securities Commission, Mr Gord McCreary former CEO said that Baffinland shareholders haven't been provided with enough information about the proposed CAD 590 million joint offer from ArcelorMittal and Nunavut Iron Ore Acquisition Inc. The OSC should investigate whether to stop trading in Baffinland shares tendered to the offer.
Mr McCreary said that "It would appear that the offeror have come to an agreement for the sole purpose of purchasing the securities of Baffinland without further price escalation, thereby denying the non related security holders of Baffinland of a fundamental benefit of the competitive bid process."
Ms Carolyn Shaw Rimmington, an OSC spokeswoman, said that it's the commission's policy not to comment on any correspondence it may have received.
ArcelorMittal and Nunavut, backed by Houston based private equity firm Energy & Minerals Group, had been in a bidding war for Baffinland when on January 14th 2011 they said they were combining forces to make a CAD 1.50 per share bid for Baffinland. Under the terms of the offer, ArcelorMittal would end up controlling 70% of Baffinland and Nunavut the rest.
Mr Tom Johnson, a New York based ArcelorMittal spokesman, said that "Our bid is in best interests of all shareholders. Nunavut is receiving no special treatment here and will be responsible for bearing its pro rata share of the purchase price and all costs associated with the joint offer, and the development of the Mary River Project."
Mr Bruce Walter chairman of Nunavut said that "We are confident that our offer complies with all applicable laws and that it will be proceeding on schedule."
Baffinland said this week that it recommended shareholders accept the joint takeover offer.
Mr Richard McCloskey CEO of Baffinland said that "We supported the bid. It's up to the shareholders to decide."
Mr McCreary said in a telephone interview that he's negotiating with two Chinese companies that may be interested in making a competing bid for Baffinland, which is developing the Mary River project in the Canadian Arctic.
The value of the joint offer from ArcelorMittal and Nunavut was calculated using the 393.39 million outstanding Baffinland shares cited in a January 10th 2011 Nunavut statement.(Sourced from bloomberg)
Tuesday, January 18, 2011
Ex-Baffinland CEO 'more confident', still sees Chinese interest
By: Liezel Hill17th January 2011
TORONTO (miningweekly.com) : Gord McCreary, who resigned from the board of Baffinland Iron Mines in November, after the company agreed to support a takeover bid from ArcelorMittal, said at the weekend he is still working to get a better offer on the table.
McCreary is focused on a specific, unidentified Chinese State-owned company, which he says has shown strong interest in Baffinland and its Mary River iron-ore project.
“I am more confident now than I have been in the past, yes,” he said in an interview from Beijing on Saturday.
There is “very definitely” still interest in China in Baffinland and its asset, he said.
“I can't quantify it in percentage terms in terms of likelihood and that sort of thing, all I can do is keep my head down and go as hard as I possibly can to get there.”
McCreary, who owns about 2,3-million shares of Baffinland, had dismissed successive offers from ArcelorMittal and hostile bidder Nunavut Iron Ore Acquisition as too low, and told Mining Weekly Online he was also not impressed by the announcement on Friday that the former rivals have agreed on a new joint offer for Baffinland.
Even in the absence of another offer, McCreary said he would not tender his stake in Baffinland to the new C$1,50 a share offer, which he described as a “sweetheart deal” for Nunavut.
The new offer is scheduled to close on January 24, which, unless there are any more surprises, gives McCreary a 'hard' deadline for his plan to get an alternative bid on the table.
Shares in Baffinland declined 2,6% on Monday, to C$1,51 apiece by 14:18 in Toronto.
Baffinland's board of directors said earlier in the day it has recommended the joint ArcelorMittal-Nunavut offer to shareholders, and added that it had not received any third-party acquisition proposals.
ROAD HAULAGE
Besides the new joint offer, another significant piece of news emerged last week in the form of a feasibility study published by Baffinland on the potential to start production from Mary River on a smaller scale, using trucks to transport ore to port.
The road haulage project would require an initial capital of C$605-million if the company hired a contractor to operate the project, while the C$740-million figure assumes it would be owner operated.
That is significantly lower than the $4-billion estimated for the original project plan, which includes rail and port infrastructure.
Operating costs are estimated at C$29/t under the project owner, or C$63/t if a contractor were brought in, and production from the road-haulage project could start in 2013, with about one-million tons of iron-ore being shipped, Baffinland said.
TORONTO (miningweekly.com) : Gord McCreary, who resigned from the board of Baffinland Iron Mines in November, after the company agreed to support a takeover bid from ArcelorMittal, said at the weekend he is still working to get a better offer on the table.
McCreary is focused on a specific, unidentified Chinese State-owned company, which he says has shown strong interest in Baffinland and its Mary River iron-ore project.
“I am more confident now than I have been in the past, yes,” he said in an interview from Beijing on Saturday.
There is “very definitely” still interest in China in Baffinland and its asset, he said.
“I can't quantify it in percentage terms in terms of likelihood and that sort of thing, all I can do is keep my head down and go as hard as I possibly can to get there.”
McCreary, who owns about 2,3-million shares of Baffinland, had dismissed successive offers from ArcelorMittal and hostile bidder Nunavut Iron Ore Acquisition as too low, and told Mining Weekly Online he was also not impressed by the announcement on Friday that the former rivals have agreed on a new joint offer for Baffinland.
Even in the absence of another offer, McCreary said he would not tender his stake in Baffinland to the new C$1,50 a share offer, which he described as a “sweetheart deal” for Nunavut.
The new offer is scheduled to close on January 24, which, unless there are any more surprises, gives McCreary a 'hard' deadline for his plan to get an alternative bid on the table.
Shares in Baffinland declined 2,6% on Monday, to C$1,51 apiece by 14:18 in Toronto.
Baffinland's board of directors said earlier in the day it has recommended the joint ArcelorMittal-Nunavut offer to shareholders, and added that it had not received any third-party acquisition proposals.
ROAD HAULAGE
Besides the new joint offer, another significant piece of news emerged last week in the form of a feasibility study published by Baffinland on the potential to start production from Mary River on a smaller scale, using trucks to transport ore to port.
The road haulage project would require an initial capital of C$605-million if the company hired a contractor to operate the project, while the C$740-million figure assumes it would be owner operated.
That is significantly lower than the $4-billion estimated for the original project plan, which includes rail and port infrastructure.
Operating costs are estimated at C$29/t under the project owner, or C$63/t if a contractor were brought in, and production from the road-haulage project could start in 2013, with about one-million tons of iron-ore being shipped, Baffinland said.
Friday, January 14, 2011
Arcelormittal, Nunavut Join Forces to Offer $1.51 a Share for Baffinland
Source: Bloomberg, by Thomas Biesheuvel and Natalie Doss - Jan 14, 2011
ArcelorMittal, the largest producer of steel, joined with Nunavut Iron Ore Acquisition Inc. in a bid for Baffinland Iron Mines Corp. valued at about C$519 million ($522 million) that seeks to end a three-month takeover battle.
The two companies offered C$1.50 ($1.51) a share for 100 percent of Baffinland, Luxembourg-based ArcelorMittal said in a statement today. Nunavut previously bid C$1.45 a share for 60 percent and ArcelorMittal C$1.40 apiece for the entire company.
ArcelorMittal and Nunavut, backed by Houston-based private equity-firm Energy & Minerals Group, were vying for Baffinland’s Mary River project in the Canadian Arctic. ArcelorMittal, based in Luxembourg, is seeking greater access to iron ore as prices for the steelmaking material rise. ArcelorMittal would hold 70 percent of Baffinland and Nunavut the rest under the new offer.
The Mary River project contains an estimated 365 million metric tons of reserves and 500 million tons of resources in three deposits that have been partially explored.
“Together with Nunavut Iron, we are providing a more attractive offer to Baffinland shareholders than either of us were prepared to provide on our own,” Peter Kukielski, head of mining at ArcelorMittal, said in the statement.
Daniella Dimitrov, vice chairwoman of Baffinland, Richard McCloskey, chief executive officer, and Michael Zurowski, executive vice president, didn’t immediately return telephone calls seeking comment.
Baffinland rose 3 cents, or 1.9 percent, to C$1.54 as of 9:47 a.m. in Toronto Stock Exchange trading. ArcelorMittal slid 0.3 percent to 27.195 euros by 4.11 p.m. in Amsterdam.
The new bid’s value was calculated using the 345.86 million of outstanding Baffinland shares, according to Bloomberg data.
Sunday, January 9, 2011
Mittal’s Offer For Canadian Mining Company Gets A Rival Bidder
Source: The Link, Saturday, January 8th, 2011
TORONTO– The fight between ArcelorMittal and Nunavut Iron Ore Acquisition Inc. for control of Baffinland Iron Mines Corp is heating up as the latter has now made a higher offer of $1.45 a share for the Toronto-based company. ArcelorMittal had on Friday raised its offer from $1.25 to $1.40 to beat rival Nunavat Iron Ore Acquisition Inc’s $1.35. The Luxembourg-based steel giant hiked its offer after the expiry its previous offer of $1.25 or $492 million passed Thursday mid-night. Its new offer amounts to $550.7 million.
But Nunavat, which was formed by a former Baffinland executive just to launch a hostile bid and is backed by American equity firm Energy & Minerals Group, is no mood to relent as it has raised its offer to $1.45 a share for a 60% stake in Baffinland.
Thus, Nunavat’s new offer values Baffinland at $570 million – $20 million higher than ArcelorMittal’s offer. Nunavat already owns 10% stake in Baffinland.
Both the companies have set the deadline of January 10 for Baffinland to accept their new offers. ArcelorMittal and Nunavat are fighting for control of Baffinland because of its huge 365 million tonnes of iron ore reserves at its Mary River project in far northern reaches of Canada.
It is estimated that the Mary River project can produce 18 million tonnes of iron ore annually for up to two decades. According to investment bank Jennings Capital Inc., the project is “possibly the best undeveloped iron ore deposit in the world.”
The battle for Baffinland began in September when Nunavat mounted its hostile bid with an offer of 80 cents a share. ArcelorMittal entered the fray with its offer of $1.10 cents – which was later raised to $1.25.
But Baffinland’s board and its largest shareholder Resource Capital Funds have all along favoured ArcelorMittal over Nunavut because Nunavat’s senior executive Jowdat Waheed worked for it (Baffinland) just before launching the hostile bid.
Baffinland accuses Waheed of breaking confidentiality agreements when he engineered bid for its hostile takeover.
News via The Link, Leading Indo-Canadian Newspaper
TORONTO– The fight between ArcelorMittal and Nunavut Iron Ore Acquisition Inc. for control of Baffinland Iron Mines Corp is heating up as the latter has now made a higher offer of $1.45 a share for the Toronto-based company. ArcelorMittal had on Friday raised its offer from $1.25 to $1.40 to beat rival Nunavat Iron Ore Acquisition Inc’s $1.35. The Luxembourg-based steel giant hiked its offer after the expiry its previous offer of $1.25 or $492 million passed Thursday mid-night. Its new offer amounts to $550.7 million.
But Nunavat, which was formed by a former Baffinland executive just to launch a hostile bid and is backed by American equity firm Energy & Minerals Group, is no mood to relent as it has raised its offer to $1.45 a share for a 60% stake in Baffinland.
Thus, Nunavat’s new offer values Baffinland at $570 million – $20 million higher than ArcelorMittal’s offer. Nunavat already owns 10% stake in Baffinland.
Both the companies have set the deadline of January 10 for Baffinland to accept their new offers. ArcelorMittal and Nunavat are fighting for control of Baffinland because of its huge 365 million tonnes of iron ore reserves at its Mary River project in far northern reaches of Canada.
It is estimated that the Mary River project can produce 18 million tonnes of iron ore annually for up to two decades. According to investment bank Jennings Capital Inc., the project is “possibly the best undeveloped iron ore deposit in the world.”
The battle for Baffinland began in September when Nunavat mounted its hostile bid with an offer of 80 cents a share. ArcelorMittal entered the fray with its offer of $1.10 cents – which was later raised to $1.25.
But Baffinland’s board and its largest shareholder Resource Capital Funds have all along favoured ArcelorMittal over Nunavut because Nunavat’s senior executive Jowdat Waheed worked for it (Baffinland) just before launching the hostile bid.
Baffinland accuses Waheed of breaking confidentiality agreements when he engineered bid for its hostile takeover.
News via The Link, Leading Indo-Canadian Newspaper
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