Australia-listed iron ore exploration and development company African Iron Limited (African Iron) has announced that its directors have formally accepted the offer of South Africa-based mining company Exxaro Resources Limited (Exxaro) for all the shares and listed options in African Iron owned or controlled by them.
Last week, the company's largest shareholder Cape Lambert had formally accepted Exxaro's offer for shares equivalent to 19.99 percent of African Iron.
Exxaro is offering A$0.51 cash per each African Iron share, adding that it will increase the offer to A$0.57 per share if it has a relevant interest in 75 percent or more of African Iron shares. The offer amounts to A$338 million at the base price of A$0.57.
The African Iron board unanimously recommends that shareholders accept the takeover offer, in the absence of a superior proposal. The takeover offer will remain open until February 14, 2012 unless extended.