06/08/2018 - 13:29

FMG to retain Atlas blocking stake

06/08/2018 - 13:29

Bookmark

Save articles for future reference.

Fortescue Metals Group has reduced its stake in Atlas Iron but crucially still holds more than 10 per cent, meaning Gina Rinehart's Hancock Prospecting will not be able to acquire full ownership of the takeover target.

FMG to retain Atlas blocking stake
Hancock and Fortescue covet Atlas's rights at Port Hedland, given limited opportunities for expansion.

Fortescue Metals Group has reduced its stake in Atlas Iron but crucially still holds more than 10 per cent, meaning Gina Rinehart's Hancock Prospecting will not be able to acquire full ownership of the takeover target.

Fortescue said today it had cut its stake in Atlas from 19.9 per cent to 11.37 per cent.

The news comes after Hancock said late Friday it had increased its stake in Atlas to 56 per cent and extended the offer for two weeks.

The Andrew Forrest-led Fortescue used today's announcement to reveal its intentions in relation to Atlas, confirming its main interest was in berth allocations at the crowded inner harbour at Port Hedland.

“Fortescue has considered its options with regard to the 19.9 per cent shareholding in Atlas Iron and has decided to retain a substantial shareholding for strategic reasons reflecting our confidence in the long term fundamentals of the iron ore sector in the Pilbara,” chief executive Elizabeth Gaines said.

“Fortescue looks forward to participating in the future of Atlas Iron and is confident that the directors of Atlas Iron will continue to act in the best interests of all shareholders.

"Fortescue will actively participate in the proposed industry consultation with the Western Australian government regarding berth access at Port Hedland.”

Fortescue acquired its blocking stake in Atlas in June, when it was a takeover target for then suitor Mineral Resources.

Atlas endorsed a $390 million offer from Gina Rinehart's Hancock Prospecting later that month.

By holding more than a 10 per cent stake, Fortescue prevents Hancock from owning 90 per cent or more of Atlas, which would trigger a compulsory acquisition.

 

 

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options