19/09/2014 - 12:48

Fogarty backs IOH takeover

19/09/2014 - 12:48

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Iron Ore Holdings confirmed today that its second-largest shareholder 3rd Wave Investors, Brettney and Annie Fogarty’s investment vehicle, has accepted BC Iron’s $256 million takeover bid for IOH.

Fogarty backs IOH takeover
IOH managing director Alwyn Vorster.

Iron Ore Holdings confirmed today that its second-largest shareholder, 3rd Wave Capital, Brettney Fogarty and Annie Fogarty’s investment vehicle, has accepted BC Iron’s $256 million takeover bid for IOH.

Mr Fogarty's share stake equals to about $7 million.

3rd Wave was ranked 16 in IOH’s top 20 largest shareholders in October 2012, with 1.1 million shares held giving it a 0.68 per cent interest.

IOH’s share price at the time was valued at 83 cents per share.

By October last year, 3rd Wave owned 7.8 million shares with a 4.85 per cent interest.

“There has been positive feedback from the large majority of IOH’s shareholders to the offer, and IOH will commence an active campaign recommending that remaining shareholders accept the offer,” IOH managing director Alwyn Vorster said.

BC Iron now holds a 71.9 per cent interest in IOH’s shares, up from 59.5 per cent last week.

Last week, IOH’s largest shareholder, Australian Capital Equity, accepted the offer.

“ACE is pleased with the progress of the offer, and is looking forward to participating as a BC Iron shareholder in the development and operations of the Nullagine, Iron Valley and Buckland projects,” ACE chief executive officer Ryan Stokes said.

Meanwhile, Mineral Resources, IOH’s project partner at Iron Valley, said it is making efforts to truck and ship stockpiled product that had already been mined and processed at the Iron Valley site.

Mineral Resources said delays to a targeted shipping date in September was pushed back due to 'economic factors', such as movements in commodity prices and exchange rates.

IOH shares fell by 0.5 per cent to 96 cents per share, while BC Iron shares rose by 0.25 per cent to $2 per share at 12:45pm. 

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