Rio Tinto Moves To Compulsory Acquisition Of Riversdale
June 16 2011 - 11:46PM
Dow Jones News
Rio Tinto PLC (RIO) said Friday it moved to a compulsory
acquisition of the few outstanding shares in Africa-focused coal
producer Riversdale Mining Ltd. (RIV.AU), having now secured a more
than 99% stake after India's Tata Steel Ltd. (500470.BY)
surrendered its shareholding to the bid.
Rio has already begun integrating Riversdale into its
operations, taking control of a colliery in South Africa and a
significant developing coking coal deposit in Mozambique that will
be able to feed rising demand for the raw steelmaking commodity in
rapidly industrializing Asian countries, particularly China.
Tata late Thursday said it had decided to sell its slightly more
than 26% interest in Sydney-based Riversdale for about A$1.06
billion (US$1.1 billion) so that it wouldn't remain an investor in
a soon-to-be-delisted company.
Rio launched its offer for Riversdale in December, but was
prompted to repeatedly extend the deadline for the bid and raise
the offer price to A$16.50 a share because of a slow acceptance by
the coal comapany's shareholders. Brazilian steelmaker Cia.
Siderurgica Nacional SA (SID) sold its about 19% stake in
Riversdale in April, pushing Rio toward majority ownership and
plans to delist Riversdale in Australia.
"This is a great outcome for Rio Tinto," said Doug Ritchie,
chief executive of the company's energy division.
The offer, which values Riversdale at close to US$4 billion, is
set to close late Friday.
Riversdale is developing two projects in Mozambqie and expects
its Benga mine to produce its first coal for export before the end
of the year. Tata is a partner in Benga and has an agreement for
40% of the coking coal produced by the mine. Commodities trader
Trafigura this month struck a deal worth more than US$200 million
to buy all thermal coal produced at Benga.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
Riversdale Mining (ASX:RIV)
Historical Stock Chart
From Apr 2024 to May 2024
Riversdale Mining (ASX:RIV)
Historical Stock Chart
From May 2023 to May 2024
