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 news.ninemsn.com.au)
Showing posts with label takeover offer. Show all posts
Showing posts with label takeover offer. Show all posts
Thursday, February 9, 2012
Tuesday, January 31, 2012
CEO of Lakeside Steel steps down before JMC Steel takeover
Tue, 31 Jan, 2012
Welland, Ontario-based Lakeside Steel announced on Monday that its chairman and CEO, Vic Alboini, is stepping down before the takeover by Chicago, Illinois-based JMC Steel. Alboini will remain on the Board of Directors and independent director Norman Findlay will take over as interim chairman. The current President and COO, Ron Bedard, will serve as acting CEO.
On January 26, SteelOrbis reported that JMC Steel was the "strategic" buyer of Lakeside, a pipe manufacturer for the oil and gas industry that has suffered substantial financial losses in recent quarters. JMC purchased Lakeside for US$0.298 per share, which is an approximately 326 percent premium over the closing price of Lakeside's shares when Lakeside first made the announcement of a potential buyer on December 21, 2011.
(sourced SteelOrbis.com)
Welland, Ontario-based Lakeside Steel announced on Monday that its chairman and CEO, Vic Alboini, is stepping down before the takeover by Chicago, Illinois-based JMC Steel. Alboini will remain on the Board of Directors and independent director Norman Findlay will take over as interim chairman. The current President and COO, Ron Bedard, will serve as acting CEO.
On January 26, SteelOrbis reported that JMC Steel was the "strategic" buyer of Lakeside, a pipe manufacturer for the oil and gas industry that has suffered substantial financial losses in recent quarters. JMC purchased Lakeside for US$0.298 per share, which is an approximately 326 percent premium over the closing price of Lakeside's shares when Lakeside first made the announcement of a potential buyer on December 21, 2011.
(sourced SteelOrbis.com)
Thursday, January 12, 2012
Cash takeover offer by Exxaro for African Iron
Thursday, 12 Jan 2012
Exxaro Resources Limited and African Iron Limited announced that African Iron and a wholly owned subsidiary of Exxaro Resources Limited, Exxaro Australia Iron Investments Pty Ltd have signed a Takeover Bid Implementation Agreement for an off market, cash takeover for all of the shares and listed options in African Iron.
Key points
1. Exxaro is offering AUD 0.51 cash base consideration for each African Iron share
2. Exxaro will increase the consideration to AUD 0.57 cash where Exxaro has a relevant interest in 75% or more of African Iron shares
3. In addition, Exxaro is offering AUD 0.31 cash base consideration for each listed African Iron option. Exxaro will increase the consideration to AUD 0.37 cash where Exxaro has a relevant interest in 75% or more of African Iron shares
4. African Iron largest shareholder, Cape Lambert Resources has entered into a pre bid acceptance agreement with Exxaro in respect of 19.99% of African Iron current shares on issue
5. The African Iron board unanimously recommends that shareholders and option holders accept the Exxaro takeover offer in the absence of a superior proposal
6. Each African Iron director intends to accept the offer with respect to all shares and listed options owned or controlled by them within 6 business days of the offer opening, in the absence of a superior proposal,
7. The offer is subject to only a small number of conditions, namely more than 50% minimum acceptance, no regulatory action, no material adverse change and no prescribed occurrences
8. The base consideration of AUD 0.51 per share represents a 49% premium to African Iron 30 day VWAP of AUD 0.343 and a 76% premium to African Iron 90 day VWAP of AUD 0.289. The increased consideration of AUD 0.57 per share represents a 66% premium to African Iron 30 day VWAP of AUD 0.343 and a 97% premium to African Iron 90 day VWAP of AUD 0.289
9. The base consideration of AUD 0.31 per option represents a 73% premium to the 30 day VWAP of listed African Iron options of AUD 0.179 and a 121% premium to the 90 day VWAP of listed African Iron options of AUD 0.140. The increased consideration of AUD 0.37 per option represents a 107% premium to the 30 day VWAP of African Iron listed options of AUD 0.179 and a 164% premium to the 90 day VWAP of African Iron listed options of AUD 0.140
10. Exxaro will fund the takeover from cash reserves and existing debt facilities, and has already obtained Foreign Investment Review Board and all necessary South African regulatory approvals for the takeover,
11. The offer at the increased consideration of AUD 0.57 per share values African Iron at approximately AUD 338 million on a fully diluted basis
12. The offer will be open for acceptances until 5pm Perth time on 14 February 2012
Dr Ian Burston Independent, Non-Executive Chairman of African Iron said the African Iron Board of Directors has carefully considered the offer by Exxaro and in the absence of a superior proposal, the Board unanimously recommends that shareholders and listed option holders should accept the offer.
Mr Mr Sipho Nkosi CEO of Exxaro Resources Limited said “We are very excited about African Iron’s projects in the Republic of Congo, as they will provide Exxaro with the opportunity to realise its stated ambitions of developing a significant iron ore asset in this rapidly emerging and prospective region.”
Mr Nkosi further added “The African Iron acquisition will enable Exxaro to leverage its bulk commodity and iron ore expertise into the development of the Mayoko project. We have invested a significant amount of time and resources in due diligence on this acquisition including several site visits and meetings with senior members of the Republic of Congo government.”
Exxaro Resources Limited and African Iron Limited announced that African Iron and a wholly owned subsidiary of Exxaro Resources Limited, Exxaro Australia Iron Investments Pty Ltd have signed a Takeover Bid Implementation Agreement for an off market, cash takeover for all of the shares and listed options in African Iron.
Key points
1. Exxaro is offering AUD 0.51 cash base consideration for each African Iron share
2. Exxaro will increase the consideration to AUD 0.57 cash where Exxaro has a relevant interest in 75% or more of African Iron shares
3. In addition, Exxaro is offering AUD 0.31 cash base consideration for each listed African Iron option. Exxaro will increase the consideration to AUD 0.37 cash where Exxaro has a relevant interest in 75% or more of African Iron shares
4. African Iron largest shareholder, Cape Lambert Resources has entered into a pre bid acceptance agreement with Exxaro in respect of 19.99% of African Iron current shares on issue
5. The African Iron board unanimously recommends that shareholders and option holders accept the Exxaro takeover offer in the absence of a superior proposal
6. Each African Iron director intends to accept the offer with respect to all shares and listed options owned or controlled by them within 6 business days of the offer opening, in the absence of a superior proposal,
7. The offer is subject to only a small number of conditions, namely more than 50% minimum acceptance, no regulatory action, no material adverse change and no prescribed occurrences
8. The base consideration of AUD 0.51 per share represents a 49% premium to African Iron 30 day VWAP of AUD 0.343 and a 76% premium to African Iron 90 day VWAP of AUD 0.289. The increased consideration of AUD 0.57 per share represents a 66% premium to African Iron 30 day VWAP of AUD 0.343 and a 97% premium to African Iron 90 day VWAP of AUD 0.289
9. The base consideration of AUD 0.31 per option represents a 73% premium to the 30 day VWAP of listed African Iron options of AUD 0.179 and a 121% premium to the 90 day VWAP of listed African Iron options of AUD 0.140. The increased consideration of AUD 0.37 per option represents a 107% premium to the 30 day VWAP of African Iron listed options of AUD 0.179 and a 164% premium to the 90 day VWAP of African Iron listed options of AUD 0.140
10. Exxaro will fund the takeover from cash reserves and existing debt facilities, and has already obtained Foreign Investment Review Board and all necessary South African regulatory approvals for the takeover,
11. The offer at the increased consideration of AUD 0.57 per share values African Iron at approximately AUD 338 million on a fully diluted basis
12. The offer will be open for acceptances until 5pm Perth time on 14 February 2012
Dr Ian Burston Independent, Non-Executive Chairman of African Iron said the African Iron Board of Directors has carefully considered the offer by Exxaro and in the absence of a superior proposal, the Board unanimously recommends that shareholders and listed option holders should accept the offer.
Mr Mr Sipho Nkosi CEO of Exxaro Resources Limited said “We are very excited about African Iron’s projects in the Republic of Congo, as they will provide Exxaro with the opportunity to realise its stated ambitions of developing a significant iron ore asset in this rapidly emerging and prospective region.”
Mr Nkosi further added “The African Iron acquisition will enable Exxaro to leverage its bulk commodity and iron ore expertise into the development of the Mayoko project. We have invested a significant amount of time and resources in due diligence on this acquisition including several site visits and meetings with senior members of the Republic of Congo government.”
Sunday, January 8, 2012
NMDC drops acquisition plan for Tacoa coal mine in US
Sunday, 08 Jan 2012
The Indian Express reported that NMDC has dropped the takeover bid for Tacoa coal mine in the US owing to the high accident rates and adverse geological conditions there.
This development comes soon after the company dropped its bid for the Vince coal project in Russia and the Greystone iron ore mine in Brazil.
The NMDC board, after extensive deliberations on December 2, shot down the proposal to acquire the Tacoa mine for USD 90.74 million. The directors observed that legal consultants hired for due diligence have advised against the acquisition bid as the mine has definite legal issues.
In addition, the reserves do not meet the guidelines of the concerned US agencies and have not been estimated through scientific mining methodologies. The board also expressed the apprehension that NMDC is a known iron ore mining firm and has no expertise in mining coal.
The Board observed that “As per the diligence reports, several companies have previously mined coal from Tacoa’s leased property and the adjacent one. However, it was observed that each company experienced financial loss as a result of encountering adverse geological conditions, as Tacoa has, and ceased their operations.”
In view of the adverse mining conditions and high accident rates, the board expressed its objections to the takeover bid.
(sourced Indianexpress.com)
The Indian Express reported that NMDC has dropped the takeover bid for Tacoa coal mine in the US owing to the high accident rates and adverse geological conditions there.
This development comes soon after the company dropped its bid for the Vince coal project in Russia and the Greystone iron ore mine in Brazil.
The NMDC board, after extensive deliberations on December 2, shot down the proposal to acquire the Tacoa mine for USD 90.74 million. The directors observed that legal consultants hired for due diligence have advised against the acquisition bid as the mine has definite legal issues.
In addition, the reserves do not meet the guidelines of the concerned US agencies and have not been estimated through scientific mining methodologies. The board also expressed the apprehension that NMDC is a known iron ore mining firm and has no expertise in mining coal.
The Board observed that “As per the diligence reports, several companies have previously mined coal from Tacoa’s leased property and the adjacent one. However, it was observed that each company experienced financial loss as a result of encountering adverse geological conditions, as Tacoa has, and ceased their operations.”
In view of the adverse mining conditions and high accident rates, the board expressed its objections to the takeover bid.
(sourced Indianexpress.com)
Friday, November 18, 2011
Optimum Coal minorities to get takeover offer
Glencore had announced an expression of interest in a controlling stake that valued Optimum at R34 per share, offer to buy remaining shares will be made
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Thursday, October 20, 2011
Peabody and ArcelorMittal extend offer for Macarthur Coal to November 11
Thursday, 20 Oct 2011
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Saturday, October 15, 2011
Coal miner Walter's shares rise on takeover talk
Sat, Oct15, 2011
* Stock rises for second consecutive day
* Two newspaper reports say Walter Energy is target
(Reuters) - Shares of Walter Energy rose for a second day on Friday on reports that the U.S. coal mining company is the target of a takeover.
The newspaper, The Australian, reported that BHP Billiton , the world's largest mining company, is considering a $6 billion bid for the company. It cited no sources.
On Thursday, a British newspaper, The Independent, said BHP and Anglo American were interested in acquiring Walter, which has large reserves of steel-making metallurgical coal. That report said Anglo had poured cold water on such talk when it first came up in September.
BHP declined to comment. The company has flagged that it would chase acquisitions in commodities where it is not one of the leading players, after it was forced to scrap three big takeovers between between 2008 and 2010 on competition and political concerns.
As one of the world's biggest coal producers, it would be likely to run into competition hurdles if it bid for Walter Energy.
UBS analyst Glyn Lawcock played down the likelihood that BHP would be interested in Walter Energy as BHP has the ability to double coking coal production from its Australian operations and is also focusing on Indonesia.
"U.S. coal producers are generally higher cost and lower margin than Australian assets within BHP current portfolio. I'm not sure why BHP would want to do it," he said.
A spokesman for Alabama-based Walter said the company would not comment on speculation
The company's shares rose 12 percent on Thursday and jumped 6 percent on Friday morning before easing to close up 2.8 percent at $77.36.
Analyst Lucas Pipes, of Brean Murray Carret & Co, said the price rise was clearly linked to the market talk that Walter was a target.
He said U.S. coal producer Peabody Energy and European steelmaker ArcelorMittal had just received final approval to go ahead with their joint acquisition of Australian miner Macarthur Coal .
"That indicates there's still a lot of demand for met coal reserves and Walter falls into that category," Pipes said.
Other U.S. coal stocks rose on Friday on macro-economic issues, analysts said. Alpha Natural Resources ended up 4.8 percent to $21.65, Arch Coal finished 4.4 percent higher at $17.50 and Peabody Energy rose 3.2 percent to $39.46. The Dow Jones coal index closed 4.4 percent higher.
* Stock rises for second consecutive day
* Two newspaper reports say Walter Energy is target
(Reuters) - Shares of Walter Energy rose for a second day on Friday on reports that the U.S. coal mining company is the target of a takeover.
The newspaper, The Australian, reported that BHP Billiton , the world's largest mining company, is considering a $6 billion bid for the company. It cited no sources.
On Thursday, a British newspaper, The Independent, said BHP and Anglo American were interested in acquiring Walter, which has large reserves of steel-making metallurgical coal. That report said Anglo had poured cold water on such talk when it first came up in September.
BHP declined to comment. The company has flagged that it would chase acquisitions in commodities where it is not one of the leading players, after it was forced to scrap three big takeovers between between 2008 and 2010 on competition and political concerns.
As one of the world's biggest coal producers, it would be likely to run into competition hurdles if it bid for Walter Energy.
UBS analyst Glyn Lawcock played down the likelihood that BHP would be interested in Walter Energy as BHP has the ability to double coking coal production from its Australian operations and is also focusing on Indonesia.
"U.S. coal producers are generally higher cost and lower margin than Australian assets within BHP current portfolio. I'm not sure why BHP would want to do it," he said.
A spokesman for Alabama-based Walter said the company would not comment on speculation
The company's shares rose 12 percent on Thursday and jumped 6 percent on Friday morning before easing to close up 2.8 percent at $77.36.
Analyst Lucas Pipes, of Brean Murray Carret & Co, said the price rise was clearly linked to the market talk that Walter was a target.
He said U.S. coal producer Peabody Energy and European steelmaker ArcelorMittal had just received final approval to go ahead with their joint acquisition of Australian miner Macarthur Coal .
"That indicates there's still a lot of demand for met coal reserves and Walter falls into that category," Pipes said.
Other U.S. coal stocks rose on Friday on macro-economic issues, analysts said. Alpha Natural Resources ended up 4.8 percent to $21.65, Arch Coal finished 4.4 percent higher at $17.50 and Peabody Energy rose 3.2 percent to $39.46. The Dow Jones coal index closed 4.4 percent higher.
Thursday, October 6, 2011
Deadline extended on Mac Coal offer
October 07, 2011 12:00AM
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
Friday, September 30, 2011
Macarthur Coal awards Codrilla contract
Friday, 30 Sep 2011
Bowen Basin miner Macarthur Coal has awarded USD 85 million contract to construct the coal handling and preparation plant at the Codrilla Coal Mine for the Coppabella Moorvale Joint Venture to mining services company Sedgman and Thiess, a subsidiary of Leighton Holdings.
The Thiess Sedgman Joint Venture will design, procure, construct and commission the plant on behalf of Macarthur with it due for completion by mid 2013 a year and a half after mining operations commence.
Sedgman relationship with Macarthur Coal spans 12 years starting with building the coal handling and preparation plant for Coppabella Mine and then for the Moorvale and Middlemount mines.
Mr Nick Jukes CEO & MD of Sedgman says the company is extremely pleased to be further strengthening this relationship with the miner.
The contract is not contingent on any outcomes of the USD 4.83 billion PEAMCoal takeover offer for Macarthur Coal.
(sourced from ABC.net.au)
Bowen Basin miner Macarthur Coal has awarded USD 85 million contract to construct the coal handling and preparation plant at the Codrilla Coal Mine for the Coppabella Moorvale Joint Venture to mining services company Sedgman and Thiess, a subsidiary of Leighton Holdings.
The Thiess Sedgman Joint Venture will design, procure, construct and commission the plant on behalf of Macarthur with it due for completion by mid 2013 a year and a half after mining operations commence.
Sedgman relationship with Macarthur Coal spans 12 years starting with building the coal handling and preparation plant for Coppabella Mine and then for the Moorvale and Middlemount mines.
Mr Nick Jukes CEO & MD of Sedgman says the company is extremely pleased to be further strengthening this relationship with the miner.
The contract is not contingent on any outcomes of the USD 4.83 billion PEAMCoal takeover offer for Macarthur Coal.
(sourced from ABC.net.au)
Wednesday, August 24, 2011
Australia's Macarthur Coal meets forecasts, in bid talks
Aug24, 2011
* Says bid talks may yield better offer
* Year operating profit inches up after floods
* Warns costs to go up 15% in FY2012 on flood impact
* Shares hold 0.8% above bid
MELBOURNE, Aug 24 (Reuters) - Australia's Macarthur Coal , facing a $5 billion takeover offer, is in talks on potential counteroffers, it said on Wednesday, after meeting forecasts for a slight increase in annual operating profit as it was hit by floods.
Peabody Energy and ArcelorMittal have made a A$15.50 a share offer, which Macarthur is due to respond to by the end of next week. Any white knights would have to show their hands by then.
"Macarthur notes that it is in continuing discussions with a number of interested parties in relation to possible alternative proposals that may result in a superior offer to shareholders," the company said.
Anglo American is studying Macarthur's books for a possible counterbid, sources familiar with the matter have said. However, sources played down media reports of a possible tie-up between Anglo and China's Citic Group, Macarthur's top shareholder with a 24.5 percent stake.
Macarthur's shares closed at A$15.62 on Tuesday, less than 1 percent above the offer price, suggesting investors doubt a higher offer will emerge.
It declared a final dividend of 16 cents a share, in line with Peabody and ArcelorMittal's offer, which was to be reduced by the amount above 16 cents.
Macarthur's profit before one-offs rose to A$142.4 million ($149 million) for the year to June from A$139.1 million a year earlier. That compared with analysts' forecasts around A$144.6 million, according to Thomson Reuters I/B/E/S.
Its second half profit was hit by a five-month disruption to coal production after heavy rains and flooding in Queensland, saved only by record prices for coal used in steel-making.
Macarthur warned output at two of its mines would take some time to return to normal due to water discharge restrictions, and operating costs would rise by 15 percent to $115 per tonne in the year ahead as it restored the pits to normal.
Macarthur's net profit including the sell down of its Middlemount and Codrilla stakes nearly doubled to A$241.4 million.
Friday, August 19, 2011
China's CITIC Group undecided on Macarthur counterbid
Fri Aug 19, 2011 8:36am GMT
* Macarthur shares trade below Peabody/ArcelorMittal offer price
* CITIC says has not set timetable for listing
By Donny Kwok
HONG KONG, Aug 19 (Reuters) - China's Citic Group has yet to decide whether to launch a counterbid for Australian coal miner Macarthur Coal Ltd , which is the subject of a $5 billion hostile takeover from ArcelorMittal SA and Peabody Energy Corp .
Citic Group, together with subsidiary Citic Resources Holdings Ltd , owns about 24 percent of Macarthur, making it the single largest shareholder of the world's biggest producer of pulverised and cleaner burning coal.
"It is not yet time to show our stance (on Peabody's offer)," Citic Group Chairman Chang Zhenming told reporters on Friday. He did not elaborate.
Macarthur shares fell 1.2 percent to A$15.32 on Friday, below the ArcelorMittal/Peabody offer price of A$15.66 per share, including a 16 cent dividend.
ArcelorMittal and Peabody opened their takeover for shareholder acceptance on Thursday, after Macarthur rejected the offer. Macarthur has told shareholders not to take any action on the offer until it sends out its formal response in the next two weeks.
Arcelor and Peabody own 16.1 percent of Macarthur and need another 34 percent of shareholders on board for the offer to be accepted.
Separately, Citic Group said it had not yet set a timetable for an initial public offering, Chang said.
Last year, media reports said CITIC Group was considering a $12 billion listing in Hong Kong in 2011, a move that could help the state-owned conglomerate raise its profile and cut debt.
"We are still working on an internal restructuring ... we don't have a timetable yet," he added.
* Macarthur shares trade below Peabody/ArcelorMittal offer price
* CITIC says has not set timetable for listing
By Donny Kwok
HONG KONG, Aug 19 (Reuters) - China's Citic Group has yet to decide whether to launch a counterbid for Australian coal miner Macarthur Coal Ltd , which is the subject of a $5 billion hostile takeover from ArcelorMittal SA and Peabody Energy Corp .
Citic Group, together with subsidiary Citic Resources Holdings Ltd , owns about 24 percent of Macarthur, making it the single largest shareholder of the world's biggest producer of pulverised and cleaner burning coal.
"It is not yet time to show our stance (on Peabody's offer)," Citic Group Chairman Chang Zhenming told reporters on Friday. He did not elaborate.
Macarthur shares fell 1.2 percent to A$15.32 on Friday, below the ArcelorMittal/Peabody offer price of A$15.66 per share, including a 16 cent dividend.
ArcelorMittal and Peabody opened their takeover for shareholder acceptance on Thursday, after Macarthur rejected the offer. Macarthur has told shareholders not to take any action on the offer until it sends out its formal response in the next two weeks.
Arcelor and Peabody own 16.1 percent of Macarthur and need another 34 percent of shareholders on board for the offer to be accepted.
Separately, Citic Group said it had not yet set a timetable for an initial public offering, Chang said.
Last year, media reports said CITIC Group was considering a $12 billion listing in Hong Kong in 2011, a move that could help the state-owned conglomerate raise its profile and cut debt.
"We are still working on an internal restructuring ... we don't have a timetable yet," he added.
Thursday, August 4, 2011
Macarthur Coal asks shareholders take no action on Peabody, Arcelor Mittal bid
Thu Aug 4, 2011
SYDNEY Aug 4 (Reuters) - The board of Australian miner Macarthur Coal has not decided on a A$4.7 billion ($5,01 billion) takeover offer received from Peabody Energy and ArcelorMittal and continued to ask shareholders to take no action on the bid.
Macarthur said in a statement on Thursday that it was still in talks with other parties to elicit a rival bid.
Peabody, the largest U.S. coal company, and ArcelorMittal, the world's top steel-maker, have failed to seal an agreed takeover with Macarthur, which is coveted for its supply of pulverized coal, a key steel-making ingredient.
Instead, the pair of bidders has gone direct to Macarthur shareholders with an offer of A$15.50 a share in cash, plus a 16 cent dividend. Macarthur shares last traded at A$15.78. ($1 = 0.935 Australian Dollars)
Friday, July 29, 2011
Xstrata Coal made proposal to acquire First Coal
Friday, 29 Jul 2011
Xstrata Coal has made an all cash proposal to acquire 100% of First Coal Corporation shares, options and warrants for CAD 1.75 per share. The offer values First Coal, a privately owned Canadian company, at approximately CAD 147 million (USD 153 million).
First Coal’s Board has unanimously recommended that its shareholders support the transaction, following receipt by the Board of a fairness opinion from its financial advisor. Many of First Coal's largest shareholders have entered into lock-up agreements with Xstrata Coal which represent more than 50% of First Coal's common shares.
The proposed purchase of First Coal provides Xstrata Coal with access to coking coal exploration leases in British Columbia, Canada.
The acquisition is to be completed by concurrent statutory plan of arrangement and takeover bid, and is subject to customary conditions including the arrangement being approved by at least two-thirds of the votes cast at a First Coal shareholders meeting to be held on August 2nd 2011.
Xstrata Coal has made an all cash proposal to acquire 100% of First Coal Corporation shares, options and warrants for CAD 1.75 per share. The offer values First Coal, a privately owned Canadian company, at approximately CAD 147 million (USD 153 million).
First Coal’s Board has unanimously recommended that its shareholders support the transaction, following receipt by the Board of a fairness opinion from its financial advisor. Many of First Coal's largest shareholders have entered into lock-up agreements with Xstrata Coal which represent more than 50% of First Coal's common shares.
The proposed purchase of First Coal provides Xstrata Coal with access to coking coal exploration leases in British Columbia, Canada.
The acquisition is to be completed by concurrent statutory plan of arrangement and takeover bid, and is subject to customary conditions including the arrangement being approved by at least two-thirds of the votes cast at a First Coal shareholders meeting to be held on August 2nd 2011.
Monday, February 21, 2011
Usiminas shareholders stave off potential takeover with new long-term accord
Monday, 21 February 2011
Rio de Janeiro, Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas), announced Friday that in order to prevent a potential takeover bid by industry rival Companhia Siderurgica Nacional (CSN), its controlling shareholders, led by Nippon Steel Corp., have set up a new long-term accord "to demonstrate the stability" of the company's current shareholding structure.
CSN recently purchased stakes in Usiminas, which prompted the action. According to a statement from Usiminas, the company will be governed until 2031 by controlling shareholders, including: Nippon Steel Corp.; Nippon Usiminas Co., Ltd.; Mitsubishi Corp. do Brasil S.A.; Metal One Corp.; Votorantim Industrial S.A.; Camargo Correa S.A.; Construcoes e Comercio Camargo Correa S.A.; and Camargo Correa Investimentos em Infra-estrutura S.A. Combined, the controlling companies hold 53.7 percent of Usiminas' voting capital. After 2031, the new accord will be renewable in five-year periods. The previous accord was due to expire in 2016.
"The aim is to demonstrate to other stakeholders in the company and to the market the stability of the control group and, consequently, assure the company's continuing growth and development," said Ronald Seckelmann, Vice President of finances and investor relations for Usiminas.
(sourced:steelorbis)
CSN recently purchased stakes in Usiminas, which prompted the action. According to a statement from Usiminas, the company will be governed until 2031 by controlling shareholders, including: Nippon Steel Corp.; Nippon Usiminas Co., Ltd.; Mitsubishi Corp. do Brasil S.A.; Metal One Corp.; Votorantim Industrial S.A.; Camargo Correa S.A.; Construcoes e Comercio Camargo Correa S.A.; and Camargo Correa Investimentos em Infra-estrutura S.A. Combined, the controlling companies hold 53.7 percent of Usiminas' voting capital. After 2031, the new accord will be renewable in five-year periods. The previous accord was due to expire in 2016.
"The aim is to demonstrate to other stakeholders in the company and to the market the stability of the control group and, consequently, assure the company's continuing growth and development," said Ronald Seckelmann, Vice President of finances and investor relations for Usiminas.
(sourced:steelorbis)
Tags: Brazil , South America , M&A, Nippon Steel corp, CSN, Nippon Usiminas Co.,Mitsubishi Corp., do Brasil S.A.,Metal One Corp., Votorantim Industrial S.A., Camargo Correa S.A., Construcoes e Comercio Camargo Correa S.A., Camargo Correa Investimentos em Infra-estrutura S.A.
Saturday, February 19, 2011
ArcelorMittal and Nunavut now own 93 percent of Baffinland, offer expires
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
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
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)
Friday, January 21, 2011
Australia's BC Iron agrees $341 million bid by Regent Pacific
Thu Jan 20, 2011 11:02pm GMT
* Cash offer a 4pct premium to last trade
* Regent says no change to BC Iron management, strategy
* Consolidated Minerals biggest shareholder (Adds detail)
SYDNEY, Jan 21 (Reuters) - Australia's BC Iron has recommended a cash takeover offer from major shareholder Hong Kong's Regent Pacific Group in a deal valuing the company at A$345 million ($341 million).
Regent, which is BC Iron's second-largest shareholder with a 19.87 percent stake, is offering A$3.30 cash per share. The offer is a 4 percent premium to BC Iron's last trading price of A$3.17.
BC Iron's biggest shareholder is Consolidated Minerals, owned by Ukrainian billionaire Gennadiy Bogolyubov's Palmary Enterprises.
BC Iron and Regent's shares were placed in a trading halt on Wednesday pending the transaction. BC Iron's core asset is its Nullagine coal project, a 50-50 joint venture with Fortescue Metals .
"Regent Pacific is seeking to be a long term player in both the growth and development of BC Iron and the Australian iron ore sector," Regent Pacific Chief Executive Jamie Gibson said, adding there were no plans to change the target's current management or strategy.
The venture plans to utilise Fortescue's transport facilities at its Christmas Creek iron ore mine, 50 kilometres south of Nullagine, to rail ore to Port Hedland for shipping to overseas steel mills.
Iron ore is currently being stockpiled and the first shipment from Port Hedland is expected in the first quarter of 2011 -- four years after BC Iron listed on the Australian stock market. The company plans to export 1 million tonnes by June 2011 and then operate at an annual rate of 3 million tonnes.
Under the terms of the partnership, Fortescue buys BC Iron's share of the iron ore at the "mine gate" and assumes responsibility for shipping and marketing.
Fortescue is already operating at an annual rate of 40 million tonnes and is looking to boost that to 55 million this year.
Spot iron prices are trading at their highest level since April 2010.
($1 = 1.012 Australian Dollars)
(source: Reuters, Reporting by Michael Smith; editing by Balazs Koranyi)
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.
Monday, January 10, 2011
Mergers & Acquisitions: CIC Energy agrees to offer from India’s JSW Energy
India’s JSW Energy has agreed to buy developer CIC Energy for C$7,42 a share in cash, in a transaction that has the support of the Toronto- and Botswana-listed company’s board.
CIC Energy owns the Mmamabula coal and power station project, in Botswana. Shares in the company jumped 33% last week after a trading halt was lifted, to C$6,91.
The announcement is the second investment by JSW in Southern African coal this year, after buying a stake in JSE-listed coal junior South African Coal Mining Holdings.
The offer, which values CIC at about C$422-million, represents a 203% premium to the volume-weighted average trading price for the company’s shares on the TSX for the 30-trading-day period ended September 14, the day before CIC announced it had received the takeover proposal.
However, the price is below the non- binding C$7,75 a share that CIC had previously indicated it could receive after entering exclusive negotiations last month.
“We believe that the terms of this offer provide fair value for CIC Energy shareholders in the current environment,” CIC chairperson and CEO Warren Newfield said in a statement.
“With South Africa’s increasingly apparent shift in energy policy, the outlook for coal-based power producers looking to supply South Africa has weakened.”
CIC has been waiting for an agreement to supply about 75% of the electricity from the Mmamabula project to South African utility Eskom.
But South Africa published a draft second Integrated Resource Plan in early October, outlining the country’s energy plans from 2013 onwards, which appeared to exclude plans to source coal-fired energy from projects in the rest of sub-Saharan Africa until after 2020.
CIC announced on October 8 that it had entered into exclusive negotiations on a take- over by an unnamed “multibillion-dollar conglomerate” which could buy between 51% and 100% of the company, at a nonbinding price of C$7,75 a share.
The October exclusivity agreement followed the announcement about a month earlier that the company had received an indicative proposal “from a multibillion- dollar Indian conglomerate with interests which include coal mining and power generation”.
CIC said last week that it had received a positive fairness opinion on the JSW offer from financial adviser Deutsche Bank Securities, and that the company’s directors and officers of CIC Energy had agreed to enter into lock-up agreements with JSW to tender their shares into the offer.
Under the agreement between the two companies, JSW must launch its offer by December 20, subject to due diligence, no material adverse change and shareholders representing at least 20% of CIC’s outstanding shares, including the officers and directors, having entered into lock-up agreements.
The offer will require government and regulatory approvals and approval by shareholders representing at least two-thirds of CIC Energy shares on a partially diluted basis.
CIC has agreed not to solicit other transactions, and JSW will have the right to match any superior offer. CIC will, under certain circumstances, also pay a break fee of about C$10,5-million if the acquisition is not completed.
News via miningweekly.com by Liezel Hill, 3rd December 2010
Edited by: Martin Zhuwakinyu
CIC Energy owns the Mmamabula coal and power station project, in Botswana. Shares in the company jumped 33% last week after a trading halt was lifted, to C$6,91.
The announcement is the second investment by JSW in Southern African coal this year, after buying a stake in JSE-listed coal junior South African Coal Mining Holdings.
The offer, which values CIC at about C$422-million, represents a 203% premium to the volume-weighted average trading price for the company’s shares on the TSX for the 30-trading-day period ended September 14, the day before CIC announced it had received the takeover proposal.
However, the price is below the non- binding C$7,75 a share that CIC had previously indicated it could receive after entering exclusive negotiations last month.
“We believe that the terms of this offer provide fair value for CIC Energy shareholders in the current environment,” CIC chairperson and CEO Warren Newfield said in a statement.
“With South Africa’s increasingly apparent shift in energy policy, the outlook for coal-based power producers looking to supply South Africa has weakened.”
CIC has been waiting for an agreement to supply about 75% of the electricity from the Mmamabula project to South African utility Eskom.
But South Africa published a draft second Integrated Resource Plan in early October, outlining the country’s energy plans from 2013 onwards, which appeared to exclude plans to source coal-fired energy from projects in the rest of sub-Saharan Africa until after 2020.
CIC announced on October 8 that it had entered into exclusive negotiations on a take- over by an unnamed “multibillion-dollar conglomerate” which could buy between 51% and 100% of the company, at a nonbinding price of C$7,75 a share.
The October exclusivity agreement followed the announcement about a month earlier that the company had received an indicative proposal “from a multibillion- dollar Indian conglomerate with interests which include coal mining and power generation”.
CIC said last week that it had received a positive fairness opinion on the JSW offer from financial adviser Deutsche Bank Securities, and that the company’s directors and officers of CIC Energy had agreed to enter into lock-up agreements with JSW to tender their shares into the offer.
Under the agreement between the two companies, JSW must launch its offer by December 20, subject to due diligence, no material adverse change and shareholders representing at least 20% of CIC’s outstanding shares, including the officers and directors, having entered into lock-up agreements.
The offer will require government and regulatory approvals and approval by shareholders representing at least two-thirds of CIC Energy shares on a partially diluted basis.
CIC has agreed not to solicit other transactions, and JSW will have the right to match any superior offer. CIC will, under certain circumstances, also pay a break fee of about C$10,5-million if the acquisition is not completed.
News via miningweekly.com by Liezel Hill, 3rd December 2010
Edited by: Martin Zhuwakinyu
Subscribe to:
Posts (Atom)
Posts
