Australian iron ore miner Atlas Iron Limited has announced that Australia-based Redstone Corporation Pty Ltd (Redstone), a wholly-owned subsidiary of Hancock Prospecting Pty Limited which is owned by Australian billionaire Gina Rinehart, has lodged a takeover bid for 100 percent of the shares in Atlas for a cash consideration of A$0.042 per Atlas share or A$390 million. The company stated that it will evaluate the offer and provide its shareholders with a recommendation in due course.
In April this year, Atlas Iron reached an agreement with Australian mining services and processing company Mineral Resources Limited to combine by way of a scheme of arrangement pursuant to which Mineral Resources will acquire the entire issued capital of Atlas for a consideration of A$280.2 million. Regarding the offer from Redstone, Mineral Resources has stated that it is currently considering its position and will advise its intentions.
Meanwhile, Australian iron ore miner Fortescue Metals Group has recently acquired 15 percent of ordinary shares in Atlas Iron at a price of A$55.7 million, increasing its total shares in the company to 19.9 percent, while stating that it does not intend to support the proposed scheme of arrangement between Atlas Iron and Mineral Resources.