Rio Tinto Says Has Made Final Extension Of Riversdale Offer

Rio Tinto PLC (RIO) said Friday it has made the final extension to its takeover offer for Africa-focused coal producer Riversdale Mining Ltd. (RIV.AU) in a bid to mop up the few shares it hasn't secured or aren't held by India's Tata Steel Ltd. (500470.BY).

The London-based mining giant said in a statement to the Australian Stock Exchange it now holds a 73.42% interest in Riversdale, leaving the free float of shares at just 0.3% of the total. Tata has a stake of slightly more than 26%, having increased its holding after Rio made its bid for Riversdale last December.

Rio Tinto said its A$16.50 a share cash offer for the Sydney-based coal company is now set to close after the Australian market closes June 17 and won't be extended again. The offer has been repeatedly pushed out since it was first made, and was most recently set to close Friday.

Rio Tinto's offer values Riversdale at roughly US$4 billion.

Since gaining control of Riversdale, Rio Tinto been tightening its control of the company, which is developing a significant deposit of coking coal in Mozambique and expects to begin production at its new Benga mine there later in the year.

Riversdale earlier Friday said it had entered a "take-or-pay" agreement with commodities trader Trafigura for all thermal coal that will be produced in the first stage of developing the Benga mine, which is worth about US$200 million at forecast coal prices.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

Riversdale Mining (ASX:RIV)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024