29/07/2016 - 14:22

Iluka flags $400m acquisition

29/07/2016 - 14:22

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Mineral sands miner Iluka Resources has revealed it is in takeover talks with London-listed Sierra Rutile, an Africa-focused miner with a market cap of about $400 million.

Iluka flags $400m acquisition
David Robb is due to step down as Iluka's managing director in September.

Mineral sands miner Iluka Resources has revealed it is in takeover talks with London-listed Sierra Rutile, an Africa-focused miner with a market cap of about $400 million.

Perth-based Iluka requested its shares be halted from trading on the ASX until it announced a ‘potential corporate transaction’ involving Sierra.

“The company is in advanced discussions with Sierra in relation to an all cash offer,” Iluka said.

“At this stage, the discussions are incomplete and any transaction remains subject to a limited number of important pre-conditions.

“Therefore, there can be no certainty that a transaction will proceed.”

Sierra is a mineral sands miner that wholly owns a high-grade rutile mine in Sierra Leone.

The company trades on the London Stock Exchange and holds a market cap of £223 million ($A390.7 million).

Iluka said confidentiality had been lost in relation to the discussions with Sierra, and had requested its shares be halted from trade until Tuesday at the latest.

In December last year, Iluka backed out of long-running takeover discussions with Ireland-based Kenmare Resources after being advised the target’s major shareholder wouldn’t support the deal.

Iluka managing director David Robb is due to step down from the role in September and pass the torch on to the former head of Wesfarmers' chemicals, energy and fertilisers division, Tom O'Leary.

Iluka shares last traded at $7.02 each.

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