PERTH (miningweekly.com) – The board of takeover target Flinders Mines has backed an increased offer from New Zealand’s Todd Corporation, which has increased its all-cash unconditional offer for Flinders shares from the initial 1.3c a share to 2.5c a share.
The new offer represented a premium of 213% to the closing price of Flinders shares before the initial offer was launched in March.
The improved offer valued Flinders at around A$73.8-million.
Flinders chairperson Bob Kennedy said on Monday that the company had progressed extensive negotiations with Todd and were delighted to have achieved the increased offer.
“The Flinders board has explored all possible opportunities to independently develop the Pilbara iron-ore project. Our discussions have not resulted in any proposal being made to Flinders to either purchase Pilbara project ore or provide infrastructure access.
“With that in mind, the Flinders board considers the improved Todd offer as the best outcome for shareholders; we unanimously recommend shareholders accept and will be selling into the offer ourselves. Given the offer is now best and final, we encourage shareholders to accept without delay.”
Meanwhile, Todd told Flinders shareholders that the offer would provide certain value to shareholders, with payment to be dispatched within seven business days of acceptance.
Further, the improved offer avoided the need for Flinders shareholders to participate in any future capital raisings, and ensured that they were not exposed to the developmental risks attached to the Pilbara project.
Todd noted that the increased offer would be its best and final offer for shares in Flinders.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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