28/02/2012 - 10:39

Exxaro moves to mop up African Iron

28/02/2012 - 10:39

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Exxaro moves to mop up African Iron

South Africa’s Exxaro Resources has taken its stake in takeover target African Iron to 97.88 per cent, allowing it to compulsorily acquire the remaining shares in the company.

Exxaro said African Iron’s last remaining substantial shareholders had accepted the offer, following the lead of Equatorial Resources, which yesterday accepted Exxaro’s $65 million bid for its 20.5 per cent stake in the target.

The offer of 51 cents per share increased to 57 cents per share after Exxaro acquired Equatorial’s stake, taking its interest over 75 per cent.  

African Iron holds a 92 per cent interest in the Mayoko-Lekoumou iron ore project, adjacent to Equatorial’s Mayoko-Moussondiji iron project in the Democratic Republic of Congo.

The takeover offer has been extended, and will now close on March 12.

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