Anglo-Australian iron ore giant Rio Tinto Group has extended the offer period for its takeover bid for all of the shares in Riversdale Mining Limited (RML) by a period of 14 days. The offer is now due to close at 7.00 pm (Sydney, Australia time) on March 4, 2011, unless further extended or withdrawn.
As SteelOrbis previously reported, Rio Tinto and RML have entered into a ‘bid implementation agreement' for a cash offer through which Rio Tinto seeks to acquire all of the issued and outstanding shares of the company. The offer price of AU$16 (US$16) per share values RML at approximately AU$3.9 billion (US$3.9 billion). The Australian miner is seeking at least 50 percent of Riversdale's stock. RML owns large coal mines in Mozambique and has become a target for global miners. Riversdale's assets include the Benga project and the neighbouring Zambeze project in Mozambique which have high quality coking coal.
As SteelOrbis previously reported, Brazil's largest diversified steelmaker Companhia Siderurgica Nacional SA (CSN) has raised its stake in Riversdale. CSN raised its stake from 16.29 percent on November 24 to 17.58 percent on February 8, which potentially complicates the US$3.9 billion offer made by Rio Tinto.
Riversdale's current biggest shareholder is Tata Steel, which owns 24.2 percent.