17/04/2009 - 09:36

Iluka accepts $150m subsidiary takeover

17/04/2009 - 09:36

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Iluka Resources expects to pocket $77 million from the sale of its controlling stake in Queensland company Consolidated Rutile after Unimin Australia launched a $150 million takeover bid.

Iluka accepts $150m subsidiary takeover

Iluka Resources expects to pocket $77 million from the sale of its controlling stake in Queensland company Consolidated Rutile after Unimin Australia launched a $150 million takeover bid.

Unimin Australia made the off-market bid today, with a cash offer of 41 cents per share, increasing to 45 cents if it can buy 90 per cent of Consolidated Rutile or more.

Unimin is a diversified processor and supplier of raw materials for the Australian, New Zealand and Asian manufacturing and primary industries.

The Sydney-based company is a wholly owned subsidiary of the US-based Unimin, which is owned by Belgium's SCR-Sibelco NV. The takeover bid is conditional on Foreign Investment Review Board acceptance.

Consolidated Rutile was in a trading halt on Friday, but last traded at 32 cents a share.

In documents lodged with the stock exchange, Unimin Australia president Kevin Crawford said the offer would offer investors certainty in uncertain times.

In a statement today, Iluka said it intends to accept Unimin's offer for its shareholding, which currently stands at 187 million shares or around 51 per cent of Consolidated Rutile.

Iluka said it will need the consent of its financiers to accept the offer or any other superior proposal.

The mineral sands miner currently markets Consolidated Rutile's annual production of minerals sands products.

Under the terms of the marketing agreement, Iluka has the option to terminate the deal on six months written notice if Consolidated Rutile ceased to be a subsidiary of Iluka.

Iluka today said it will not exercise its termination right in relation to Unimin's takeover offer and the agreement will continue to operate on its existing terms.

Yesterday Iluka reported total mineral sands sales revenue for the March quarter of $44.5 million, down 77.2 per cent on the previous corresponding period.

Shares in Iluka were up 34 cents to $3.34 at 11:19 AET.

 

 

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