Australian iron ore miner Atlas Iron Limited has announced that it has extended its approximate AU$828 million (US$842 million) off-market takeover bid for a 100 percent stake in iron ore mining company Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer has been extended until 5.00 pm, February 28, 2011, from February 11, 2011.
Atlas said that its offer will start on January 11, 2011 and be valid for a month with an acceptance condition of 90 percent. Atlas Iron holds 42.06 percent of voting power in Giralia as of February 4. The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in an earlier statement.
As SteelOrbis previously reported, Atlas had agreed to buy Aurox on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.