We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Rio Tinto closes in on Riverside Mining buyout


The mining giant has made a further bid to takeover the Australia-based company

Article comments

The mining group Rio Tinto is closing in on a full takeover of Riversdale Mining after a fresh bid worth £2.4 billion was enough to win over an extra eight percent of shareholders.

Supporters of Rio Tinto’s takeover bid now account for 26.13 percent of Riversdale shares but there is still some uncertainty about how the company’s two biggest players view the proposals.

Steelmakers Tata Steel and CSN collectively own 47 percent of the business and it is unclear whether either or both parties are keen to see a deal go ahead.

Rio Tinto has said that its latest offer of A$16.5 (£10.32) per share is final but almost all minority shareholders will need to accept the terms if neither Tata Steel or CSN signal their support for the proposals.

Tata, a long-time shareholder in Riversdale, has a director on the board who has backed Rio Tinto's offer, indicating Tata is not hostile to the bid.

Tata Steel managing director Hemant Nerurkar has said the company is mainly interested in securing coal supplies from Riversdale.

The wild card is Brazil's CSN, which recently raised its stake to just below the 20 percent threshold for making a full takeover offer, and has not publicly discussed its intention for the stake or possible talks with Rio Tinto.

If Rio's bid is not successful, Riversdale's shareholders are likely to face a big equity fundraising to help finance the development of its coking coal projects.

Rio shares were down 1.7 percent in early trade on Monday, while Riversdale was flat in a weak overall market.

Share:

Comments

Rio Tinto closes in on Riverside Mining buyout
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Debenhams to increase investment in distribution centre automation

The retailer wants to cut distribution costs as omni-channel demands risemore ..

Inflation dips to four-year low

Household goods, clothing and fuels behind the dipmore ..

JPMorgan to invest £150m on boosting cyber security

Fighting cyber crime is a ‘never-ending battle’, says CEO Dimonmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *