03/08/2018 - 15:29

Hancock moves to 56% Atlas stake

03/08/2018 - 15:29

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UPDATED: Gina Rinehart’s Hancock Prospecting announced late Friday it has increased its stake in takeover target Atlas Iron to 56 per cent, giving it effective control, and extended its $390 million offer for two weeks.

Hancock moves to 56% Atlas stake
Atlas incurred a statutory net loss of $21 million for the six months to December 2017.

UPDATED: Gina Rinehart’s Hancock Prospecting announced late Friday it has increased its stake in takeover target Atlas Iron to 56 per cent, giving it effective control, and extended its $390 million offer for two weeks.

Hancock subsidiary Redstone is offering 4.2 cents per share to Atlas shareholders.

The offer was set to expire at 5pm on Friday (3 August).

Hancock enjoyed a flurry of acceptances last week, after purchasing a 19.9 per cent stake in June.

Chief executiv Garry Korte urged all remaining shareholders to accept the offer and re‐iterated Hancock’s intentions.

“We look forward to working with the Atlas team, and with the contractors and other
stakeholders, once we commence our strategic review of the Atlas business following the
completion of our offer,” he said.

Hancock's offer trumped a $280 million bid from Mineral Resources and followed a 20 per cent equity purchase by Fortescue Metals Group.

MinRes has since pulled out of the takeover battle, while Fortescue is yet to reveal its intentions.

The Atlas board has unanimously recommended Hancock’s offer, and independent expert BDO has also endorsed the offer.

Atlas incurred a statutory net loss of $21 million for the six months to December 2017 and since then its operating costs have exceeded its average selling price.

 

 

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