Rio closes in on Riversdale
By Clara Ferreira-Marques |
April 7, 2011, Thursday
|
Print Edition
Print Edition
RIO Tinto is close to securing a majority of Riversdale Mining, after receiving acceptances ahead of its target level, just before a key deadline on its A$3.9 billion (US$4 billion) bid.
The global mining giant said yesterday it now holds 49.49 percent of Riversdale, a Mozambique-focused coal miner, clearing the 47 percent target it had set itself and raising the price of the deal to A$16.50 a share.
The higher price depended on Rio getting to at least a 47 percent stake in Riversdale by April 6, otherwise it would have paid A$16 a share.
Rio's offer, announced in December, was originally conditional on at least 50 percent acceptances, but it was forced to revise that plan last week after Riversdale's other two top shareholders, Brazilian steel CSN and Tata Steel, declined to sell.
Rio has since said it would go ahead even with a minority stake. Rio has targeted Riversdale because of its hard coking coal projects in Mozambique, which could eventually supply as much as a tenth of the global market for the key steel-making ingredient.
The bid fits in with Rio's strategy of developing large, long-life, low-cost assets, as China and India fuel demand for African coking coal.
The global mining giant said yesterday it now holds 49.49 percent of Riversdale, a Mozambique-focused coal miner, clearing the 47 percent target it had set itself and raising the price of the deal to A$16.50 a share.
The higher price depended on Rio getting to at least a 47 percent stake in Riversdale by April 6, otherwise it would have paid A$16 a share.
Rio's offer, announced in December, was originally conditional on at least 50 percent acceptances, but it was forced to revise that plan last week after Riversdale's other two top shareholders, Brazilian steel CSN and Tata Steel, declined to sell.
Rio has since said it would go ahead even with a minority stake. Rio has targeted Riversdale because of its hard coking coal projects in Mozambique, which could eventually supply as much as a tenth of the global market for the key steel-making ingredient.
The bid fits in with Rio's strategy of developing large, long-life, low-cost assets, as China and India fuel demand for African coking coal.
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