Australian iron ore miner Atlas Iron Limited has announced that it holds 47.37 percent of shares in fellow Australian iron ore mining company Giralia as of February 7.
According to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$840 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia’s Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent.
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 a previous 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.