BC Iron is one step closer to completing its $256 million takeover bid for the Kerry Stokes-backed Iron Ore Holdings, after major shareholder Australian Capital Equity yesterday accepted the offer.
BC Iron now holds a 59.5 per cent interest in IOH’s shares, while remaining IOH shareholders have been advised to accept the offer in the absence of a better proposal.
IOH said part of the takeover proposal required it receive consent for the change in control of IOH by the Pilbara Ports Authority.
“That consent was a condition to BC Iron’s offer, and they have declared it has been fulfilled,” IOH said in a statement.
BC Iron launched its takeover bid in August by offering 0.44 of its shares plus 10 cents in cash for each Iron Ore Holdings share.
The deal would result in the creation of a mid-cap iron ore miner with about $190 million in cash, as well as two operating mines in the Pilbara – the Nullagine joint venture and Iron Valley.
If the offer is successful, IOH would become a wholly owned subsidiary of BC Iron, with IOH shareholders to own about 36 per cent of the group.
Last month, BC Iron announced it had notched up a 51 per cent increase in full-year profit to $73.7 million, overcoming increased production discounts and a strong Australian dollar.
IOH shares fell by 0.5 per cent to 97.5 cents per share, while BC Iron shares remained unchanged at $2.09 per share at 9:30am.