Territory Resources shares have jumped by 10 per cent after Noble Group trumped South African miner Exxaro Resources $123 million takeover bid, launching its own unconditional all-cash offer that values Territory around $133 million.
Territory Resources shares have jumped by 10 per cent after Noble Group trumped South African miner Exxaro Resources' $123 million takeover bid, launching its own unconditional all-cash offer that values Territory around $133 million.
In a statement released today, the Hong Kong commodities trading house, which already owns 32.1 per cent of Territory, said its offer of $0.50 per Territory share was "patently superior" to Exxaro's.
"By making this offer to secure our holding in Territory we aim to ensure that its attention on growth will not in future run the risk of being deflected by any more opportunistic corporate actions," Noble's statement said.
Atclose of trade Territory's shares had gained 10.6 per cent, to trade at $0.52, a three-year high.
Territory Resources director Andy Haslem said the board was currently assessing the Noble offer, and would update the market in due course.
Exxaro Resources released a statement which said would review its position in light of the new circumstances and urged Territory shareholders not to take any action.
Noble's takeover bid comes just days after Territory released its target's statement in which all of its directors, bar chairman Andrew Simpson, recommended shareholders accept Exxaro's $0.46 per share offer.
Mr Simpson said on Tuesday he would not support the offer because he believed ongoing exposure to Territory within its existing corporate structure represented a better outcome than accepting Exxaro's offer and ceasing to be a Territory shareholder.
Noble said in its bidder's statement that it expected to receive full support from the Territory board.
Noble also reassured Territory shareholders that it would not seek repayment of two finance facilities earlier than their due dates.
"Throughout the financial turmoil, Noble has demonstrated unwavering support to Territory, support exhibited most notably through funding facilities and marketing capabilities along with customer and suppliers having the knowledge that Territory is backed by a leading global supply chain management company," Noble said.
"We are continuing to stand behind our commitments to help Territory develop as a standalone company."
Territory owns and operates the Frances Creek iron ore mine in the Northern Territory.
The company lodged a $9.9 million interim net profit in March, down from $13.7 million net profit in the previous corresponding period because of the severe wet season in northern Australia.
The Noble Group operates from 120 offices in 40 countries, managing a diversified portfolio of commodities, metals and minerals.
It holds interest in iron ore and coal mines, grain crushing facilities and fuel terminals, among other key infrastructure investments.
Exxaro, South Africa's second-largest coal producer, is currently undertaking an aggressive acquisition program to increase its exposure to iron ore.
It recently took a 20 per cent interest in China-based Sishen Iron Ore Company.
Exxaro also participates in the Tiwest minerals sands 50:50 joint venture with Tronox Western Australia.
