Australian iron ore miner Fortescue Metals Group has announced that it has agreed to acquire 15 percent of ordinary shares in Australian iron ore miner Atlas Iron Limited at a price of A$0.04 per share or A$55.7 million. In addition, Fortescue has an economic interest through a cash settled swap relating to notional shares equivalent to approximately 4.9 percent of Atlas Iron’s ordinary shares.
Fortescue stated that, as a result, it has an aggregate physical and economic interest in 19.9 percent of Atlas Iron’s ordinary shares.
The company also stated that it does not intend to support the proposed scheme of arrangement between Atlas Iron and Mineral Resources, a leading Australia-based mining services and processing company, on its current terms, but reserves the right to do so.
In April this year, Mineral Resources announced that it agreed to acquire all of the shares of Atlas Iron for a consideration of A$280.2 million.